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CBA profits jump 84.9% in Q1

In Summary

• CBA marked a Sh1.29 billion in the Q1 results compared to Sh701.2 million in the same period last year.

Commercial Bank of Africa Westlands branch.
Commercial Bank of Africa Westlands branch.
Image: FILE

CBA Group has announced a 84.9 per cent jump in net earnings in the three months to March.

CBA marked a Sh1.29 billion in the Q1 results compared to Sh701.2 million in the same period last year.

The results mark a lagged profit growth compared to Equity Group and KCB Group, with the three lenders rushing to grow their balance sheets through acquisitions and mergers, and expanding regionally.

Over the period, KCB Group posted a net profit of Sh5.77 billion representing a 11.4 per cent rise compared to previous period.

Equity Group led in the period with a 4.9 per cent profit growth to Sh6.2 billion.

CBA's net interest income grew by 6.8 per cent to Sh2.49 billion from Sh2.33 billion posted in the previous period.

Non-interest income mainly from fees, commissions and foreign exchange trading declined by 4.6 per cent to Sh2.50 billion from Sh2.62 billion over the period.

Its provisions for bad debts also increased by 10.6 per cent to Sh7.38 billion in the period, a move that saw the net non-performing loans decline by 48.5 per cent to Sh2.133 billion.

With CBA's merger with NIC awaits completion of regulatory approvals from authorities, the banks continue to operate and post financial results independently.

KCB Group plans to acquire 100 per cent stake of National Bank of Kenya. The bank with operations in Uganda, Tanzania, Rwanda, Burundi and South Sudan, also KCB plans to buy a bank in Rwanda and one in the Democratic Republic of the Congo (DRC).

Equity also to expand its banking units in Rwanda and Tanzania and establish existence in Zambia and Mozambique.