KCB Group has reported a net profit to KSh.30.6 billion for the first nine months of 2022, this was a 21.4% rise in profitability as compared to the KShs.25.2 billion for a similar period in the previous year.
The rise in profitability was on the back of sustained growth from both Net interest and non-funded income lines. Total revenues went up 15.3% to KShs.92.1 billion mainly driven by the growth in non-funded income. This increased by 30.2% on higher foreign exchange earnings and lending fees. Additionally, interest Income grew mainly from increase in our earning assets portfolio in particular loans disbursed during the period and investment in government securities.
On the other hand, operating Costs went up 19.6% to KShs.41.6 billion compared to KShs.34.8 billion last year. This was on account of the impact of BPR Bank, increased business activities and increase in staff costs. This saw the cost to income ratio stand at 45.1%.
During the period, the balance sheet expanded 13.7% with total assets standing at KShs1.28 trillion largely driven by growth in loans, investment in government securities funded by growth in customer deposits and additional borrowings. Net loans and advances surged 16.4% to KShs.758.8 billion from additional lending to the personal, building & construction and manufacturing sectors across the Group. Customer Deposits increased by 7.4% to KShs.922.3 billion on higher deposits from the growth of current and savings accounts.
Shareholders’ funds grew by 15.2% from KShs.163.0 billion to KShs. 187.8billion on improved and accumulated profits for the year to date. The Group maintained strong capital buffers with core capital as a proportion of total risk weighted assets standing at 14.5% against the statutory minimum of 10.5%. Total capital to risk-weighted assets ratio was at 18.1% against a regulatory minimum of 14.5%.
KCB Group CEO Paul Russo, had this to say, “We are seeing strong revenue momentum across the corporate and retail business which positions us to meet our full year outlook. Our focus has been on delivering value and support to our customers to help them navigate the tough economic environment.”
The Board proposed an interim dividend of KShs. 1.00 per share amounting to KShs. 3.2 billion.