KCB Group has posted an 86.4 per cent jump in profits to KSh29.9 billion in the first half of 2024 compared to KSh16.1 billion recorded in the same period 2023.
- The growth was primarily driven by significant increases in both interest and non- interest income pushing the total operating income 29.5 percent up to KSh94.6 billion.
- Interest income increased by 34.8 percent to KSh61.3 billion supported by the high interest rates during the review period.
- Non-interest income saw a 20.8 percent uptick to KSh33.2 billion driven by digital banking and FX trading income coupled with enhanced contributions from Trust Merchant Bank (TMB) and the DRC-based subsidiary.
“We delivered a commendable first half of the year, despite strong headwinds in the operating environment, especially in Kenya, thanks to the goodwill and confidence from our customers and commitment by our staff. We were intentional in working with our customers and stakeholders to support them in navigating the difficult environment,” said KCB Group CEO Paul Russo, while releasing the results on Wednesday.
Net Loans and advances to customers stood at KSh1.03 trillion, a 7 per cent jump from additional facilities to support our customers undertake their business activities.
To mitigate the effect of increased NPLs, provisions increased by 20 per cent. The NPL ratio stood at 18.5 per cent, slightly above the industry average. The Group attributes this to the downgrades in Kenya and the impact of translation of the foreign currency denominated book.
Operating expenses increased by 9.6 per cent to KSh44.3 billion attributed to growth in business volumes, staff costs and inflationary pressures.
The Group Total Assets grew by 6% to KSh1.98 trillion from KSh1.86 trillion, on the back of stable customer deposits growth which closed the period at KSh1.49 trillion.
KCB Group has declared an interim dividend of KSh1.50 per share – a relief to investors after skipping last year’s dividend payment citing the need to conserve capital and boost the capital base of its main subsidiary, KCB Bank Kenya.
The total dividend payout amounted to KSh4.8 billion, which will be paid on or about 30th October 2024 to shareholders in the register by 12th September 2024.
“KCB Group demonstrated remarkable strength and adaptability amid global and local challenges, by delivering good asset growth and improved capital adequacy ratios,” said KCB Group Chairman Dr. Joseph Kinyua. “This performance has enabled the Board to recommend an interim dividend of KSh1.50 per share,” he added.
KCB Group, which is listed at the Nairobi Securities Exchange under the ticker symbol KCB, closed the previous trading session at KSh29.90, a 36.5 per cent gain since January.
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