KCB Group has reported a Ksh. .40.8 Billion in profit after tax for the full year ending 31st December 2022, this represents a 19.5% rise in profitability as compared to Ksh. 34.2 Billion that was reported in a similar period last year.
The rise in profitability was on the back of a 19.6% rise in revenue to Ksh. 129.9 billion, driven by net interest income which grew by 11.5% to hit Ksh. 118 Billion. This was supported by earning assets and partially offset by increase in interest expenses from higher costs of borrowing and interbank market rates. Non-funded income grew 39.8% to Ksh. 43 Billion largely from trade finance income, lending fees and commissions.
On the other hand, costs rose by 24.1% to Ksh. 72.5 Billion largely driven by staff costs which hit Ksh. 30 Billion. Loan loss provisions also rose marginally by 1.7% to Ksh. 13.2 Billion.
The ratio of non-performing loans (NPL) stood at 17.3%, largely driven by downgrades from the KCB Kenya business. Gross NPLs stood at Ksh. 161.2 billion.
Total assets increased by 36.4% to stand at Ksh. 1.55 trillion. This was driven by loans and investment in government securities and funded by growth in customer deposits and additional borrowings. Customer loans increased by 27.8% to Ksh. 863 billion from additional lending in the Kenya business, increased lending in the international businesses and the acquisition of TMB. Customer deposits increased by 35.6% to Ksh.1.135 trillion, mainly from TMB and organic growth in the existing businesses.
Shareholders’ funds also grew by 18.9% to Ksh.206.3 billion from Ksh.173.5 billion on improved and accumulated profits for the year to date.
The Board has proposed a final dividend payout of KShs. 1.00 per share, subject to shareholder approval. This is in addition to an interim payout of KShs. 1.00 per share which was paid out in January 2023. This brings the total dividend payout for the year to KShs. 6.4 billion.
“We have made significant investments in our regional expansion strategy among them, our latest entry into DRC through the acquisition of 85% of TMB. The investments made are key to accelerating our future growth and commitment to delivering sustainable shareholder value,” said KCB Group Chairman Andrew Wambari Kairu.