RISE IN EARNINGS

KCB half year profit grows 102%, hits Sh15.3 billion

The group’s earnings rose from Sh7.6 billion recorded in a similar period last year.

In Summary

• KCB's rebound in performance came on the back of easing Covid-19 control measures that has triggered a gradual recovery in the economy, prompting banks to boost lending amid repayment of defaulted loans.

• The total capital for the Group stood at Sh172.6 billion, representing a total capital to risk-weighted assets ratio of 21.8 per cent against a regulatory minimum of 14.5 per cent.

KCB Group CEO and MD Joshua Oigara, KCB group Chairperson Andrew Kairu KCB and Group CFO Lawrence Kimathi during the release of KCB Half Year 2021 financial results in Nairobi on August 19, 2021.
KCB Group CEO and MD Joshua Oigara, KCB group Chairperson Andrew Kairu KCB and Group CFO Lawrence Kimathi during the release of KCB Half Year 2021 financial results in Nairobi on August 19, 2021.
Image: CHARLENE MALWA

KCB Group net profit for the first six months to June grew 102 per cent to Sh15.3 billion driven by increased income on loans and investment in government securities.

The group’s earnings rose from Sh7.6 billion recorded in a similar period last year.

KCB's rebound in performance came on the back of easing Covid-19 control measures that has triggered a gradual recovery in the economy, prompting banks to boost lending amid repayment of defaulted loans.

The Group maintained a solid capital position, with all key ratios well above the minimum regulatory requirement.

The total capital for the Group stood at Sh172.6 billion, representing a total capital to risk-weighted assets ratio of 21.8 per cent against a regulatory minimum of 14.5 per cent.

“We saw a strong first half of the year for the business with improved economic activity. The resilient and diversified nature of our business has helped us navigate the unfolding impact of the Covid-19 pandemic,” said Joshua Oigara, CEO KCB Bank.

The lender's non-performing loans ratio dropped to 11.9 per cent in June 2021 from 12.5 per debt in March.

"Net provisions improved by 40 per cent to sh6. 6billion as the covid-19 related impairments had been recognized in FY 2020 and the facilities restructured," the lender's financial statement read.

Deposits grew to Sh786billion in HY compared to Sh758 billion in HY20.

The lender's balance sheet crossed the 1 trillion mark to Sh1.02 trillion in h121 from Sh953.1 billion in HY20.

Edited by D Tarus