KCB Group PLC (NSE: KCB) today announced that its net profit for the nine months ending September 30, 2023, increased by 0.7% to KShs. 30.7 billion from KShs. 30.5 billion reported in the same period last year.
The Group’s total assets also grew by 64.5% to KShs. 2.1 trillion from KShs. 1.28 trillion on the back of consolidation of DRC-based subsidiary Trust Merchant Bank (TMB) acquired in December 2022 and organic growth.
KCB Group PLC Net Profit Key Highlights
- Firstly, Net profit increased to KShs. 30.7 billion from KShs. 30.5 billion in the previous year.
- Secondly, Total assets grew to KShs. 2.1 trillion from KShs. 1.28 trillion in the previous year.
- Thirdly, Customer deposits increased to KShs. 1.7 trillion from KShs. 922.3 billion in the previous year.
- Additionally, Net loans and advances crossed the one trillion-shilling mark for the first time, with the loan book closing the period at KShs. 1.05 trillion, up from KShs. 758.8 billion on TMB consolidation and organic growth in existing markets.
- Lastly, Shareholders’ funds were up by 19% to KShs. 226.1 billion from the increased profits for the period.
Profitability resilient amid challenging environment
Despite a challenging operating environment, KCB Group remained resilient, riding on diversified income streams which saw revenue increase by 27.3% to KShs. 117.3 billion, driven by non-funded income.
The contribution of Group businesses (excluding KCB Bank Kenya) to the overall profitability was up to 27.9% from 16.4% as investments in regional businesses continue to pay off.
Also, profit before tax from the Group businesses stood at KShs. 11.3 billion from KShs. 7.1 billion in the previous year.
The contribution to total assets improved to close the period at 32.2%.
Strong Capital Base and Positive Outlook
KCB Group maintained a strong capital base, with all banking subsidiaries except NBK being compliant with their respective regulatory capital requirements.
The Group’s core capital as a proportion of total risk-weighted assets stood at 14.5% against the statutory minimum of 10.5%. While the Total capital to risk-weighted assets ratio was at 17.8% against a regulatory minimum of 14.5%.
Looking ahead, KCB Group Chairman Dr. Joseph Kinyua expressed optimism about the Group’s prospects.
He also noted that the easing of inflation across the region and the expected continued robust fiscal. And monetary interventions by governments in the region would support sustained economic growth.
“This performance demonstrates the agility and strength of the financial institution which we have built over the years,” said Dr. Kinyua.
Also the bank partnered with the Swedish International Development Cooperation Agency (SIDA) to launch a KShs. 1 billion guarantee scheme to support SMEs in accessing credit.
It also teamed up with Mastercard to introduce the World Elite Exclusive Credit Card. This isoffering exclusive benefits to premium and private banking customers.
Lastly, the financial report shows KCB Group’s agility and strength, setting a positive outlook for sustained economic growth in the region.
Latest Corporate Developments
Earlier this month, the Group unveiled its commitment to its brand purpose – For People. For Better as it commemorated its 127th year of existence.
The commitment was made via an ongoing brand campaign dubbed Opening Doors of Opportunity. Speaking to the very core of who we are and what we stand for – a financial institution that is passionate about improving lives, creating positive change, and giving everyone one more reason to believe.
Also as part of its Sustainability and ESG journey, KCB Group announced in September that it is scaling the 2Jiajiri programme, the youth empowerment and job creation programme in Kenya and extending it to the other markets where the Bank operates in.
This will also see the Foundation expand the programme in Tanzania, Uganda, Burundi, and Rwanda with entry planned for South Sudan and Democratic Republic of Congo.
Additional Information
2Jiajiri aims to create at least 1.5 million direct and indirect jobs while helping to set up 30,000 businesses over the next five years.
KCB Bank Kenya and Swedish International Development Cooperation Agency (SIDA) have rolled out a Kshs. 1 Billion guarantee scheme that will go towards de-risking SMEs in their efforts to access credit and support their growth ambitions.
The 7-year guarantee facility will enable the bank to strengthen its commitment to financing Small and Medium-Sized Enterprises (SMEs).
This will continue to experience challenges, especially with access to affordable credit.
The support will also see refugees and asylum seekers receive up to 80% guarantee while the rest of the SMEs will be guaranteed up to a rate of 50%.
Also some of the target SMEs are those within the agricultural sector as well as those owned by women and youth.
In October KCB Bank Kenya also partnered with global payments technology company, Mastercard, to roll out the World Elite Exclusive Credit Card that will offer premium and private banking customers a range of market-exclusive benefits, privileges, and experiences.
Lastly, this collaboration marks a significant milestone for the Bank as it is another strong step in building a world-class offering for its high net-worth customers.
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