KCB Group has released its financial results for the first quarter of 2023 posting a decline of 1.1% in profit after tax, amounting to KES 9.8 billion.
However, the bank’s overall performance was buoyed by positive developments with non-funded income jumping significantly by 59.2% to KES 14.8 billion. This growth was primarily driven by a 111.4% surge in other fees and commissions to KES 7.1 billion. Foreign exchange trading income witnessed a substantial increase of 52.1% year-on-year to KES 2.6 billion.
Net interest income saw a growth rate of 11.8% year-on-year to KES 22.1 billion. This increase was supported by a 26.2% growth in total interest income, reaching KES 33.6 billion. There was also a notable rise of 67.7% in total interest expenses, which reached KES 11.6 billion.
In terms of operating income, KCB Group reported a 26.9% increase to KES 36.9 billion.
Loan loss provisions increased by 98.4% to KES 4.1 billion driven by a 34.8% rise in gross non-performing loans for the group, reaching KES 176.5 billion.
Net loans and advances rose by 31.9% to KES 928.8 billion. Government and investment securities saw a modest rise of 5.6% reaching KES 297.7 billion. Customer deposits increased by 41.5% year-on-year to KES 1.2 trillion.