KCB Group has reported a 54.6 per cent rise in profit after tax to Sh9.9 billion in Q1 2022 from Sh6.4 billion recorded in 2021. The lender attributed the rise to growth in total income and a reduction in loan loss provision.
Revenues in the bank also recorded a 26% rise to Sh29 billion on account of an increase in interest income, a jump in non-funded income from lending activities and service fees and a 21.1 per cent rise in earning assets.
“The business showed sustained resilience backed by our proactive approach towards driving income growth, managing liquidity, conservation of capital and cost containment. Furthermore, a relentless focus on our strategy has enabled us to maintain robust asset growth and deliver healthy return on our investments,” said outgoing KCB Group Chief Executive Joshua Oigara.
KCB net interest income grew by 18 percent to Sh19.7 billion driven by an increase in net loans and advances coupled with growth in investments in government securities even as its non-funded income grew by 47.2 percent to Sh9.3 billion.
Loan loss provisions in the group decreased by 27.5 percent from a similar period last year largely due to a drop in corporate and digital lending impairment charge after Covid-19 related provisions recognised in the 2021 full year.
The non-performing loan book continued to come under pressure due to slow recovery in the construction, hospitality and part of the manufacturing sectors, causing a deterioration from 14.8 percent to 17 per cent.
“We have effectively demonstrated our combined abilities and competencies in managing and responding to the impact of the healthcare crisis across all our markets.” KCB in their financial release.
The lender did not declare the payment of an interim dividend.