KCB first quarter profit jumps 54.6pc to Sh9.9 billion
KCB Group profit after tax surged 54.6 per cent to Shs9.9 billion in the three months ending March 2022, handing outgoing CEO Joshua Oigara (pictured) a strong finish. He attributed the rise from Sh6.4 billion a similar period last year to growth in total income and reduction in loan loss provision.
Revenues increased by 26 per cent to Sh29 billion on account of increase in interest income, increase in non-funded income from lending activities and service fees and a 21.1 per cent rise in earning assets.
“During the quarter, the business showed sustained resilience backed by our proactive approach towards driving income growth, managing liquidity, conservation of capital, and cost containment,” Oigara said.
Furthermore, he added, a relentless focus on its strategy enabled the group to maintain robust asset growth and deliver a healthy return on investments. “We have effectively demonstrated our combined abilities and competencies in managing and responding to the impact of the healthcare crisis across our markets,” the outgoing CEO said. Interest income grew 18 per cent to Sh19.7 billion driven by increase in earning assets and interest write-backs on restructured facilities.
The bank’s balance sheet increased by 19 per cent Sh1.17 trillion driven by 33 per cent rise in holdings of government securities to Sh281 billion. KCB’s net loan rose 18 per cent to Sh704 billion. The group’s non performing loans ratio was up 50 basis points in the first quarter of 2022 driven by the manufacturing, building and construction, and hospitality sectors. – John Otini