KCB Group net profit has risen by 86% to KShs.29.9 billion for the first half of the year ending June, this is as compared to KShs.16.1 billion reported a similar period last year.
The rise in profitability was on the back of a 35.1% rise in interest income from Loans and advances to Ksh. 69.1 Billion. While the interest income from Government securities rose by 40.6% to Ksh. 25.4 Billion bringing the total interest income to Ksh. 97.4 Billion.
At the same time, operating expenses rose 11.6% to Ksh.56.5 Billion on the back of a rise in staff costs as well as inflationary pressure.
While loan loss provisions rose by 19.7% to Ksh. 12.2 Billion, this was as a result of loan downgrades in the Kenya market and the impact of translation of the foreign currency denominated book. With the gross non-performing book standing at KShs.212 billion, this was driven by Kenyan, Ugandan and DRC subsidiaries.
The Group Total Assets grew by 6% to KShs. 1.98 trillion from KShs1.86 trillion, on the back of stable customer deposits growth which closed the period at KShs. 1.49 trillion. Net Loans & Advances stood at KShs.1.03 trillion, a 7% jump from additional facilities to support our customers undertake their business activities.
The Group sustained strong capital cushions, with Group core capital as a proportion of total risk-weighted assets stood at 17.8% against the statutory minimum of 10.5% while the Total capital to risk-weighted assets ratio was at 20.3% against a regulatory minimum of 14.5%. All banking subsidiaries except NBK were compliant with their respective local regulatory capital requirements.
KCB Group Chairman Dr. Joseph Kinyua , said, “KCB Group demonstrated remarkable strength and adaptability amid global and local challenges, by delivering good asset growth and improved capital adequacy ratios. This performance has enabled the Board to recommend an interim dividend of KShs. 1.50 per share.”