KCB Group has reported a KSh9.75 billion net profit for the period ended March 31, 2023.
The total assets rose by 39.8 per cent to close at Sh1.63 trillion on the back of the consolidation of its Democratic Republic of Congo (DRC) subsidiary.
The lender attributed the performance to a 26.9 per cent rise in revenues which closed the quarter at KSh36.9 billion, driven mainly by non-funded income (NFIs) from customer transactions across the Group network and consolidation of Trust Merchant Bank (TMB), the Group’s newest subsidiary in the Democratic Republic of Congo.
Group Chief Executive Paul Russo said the increase in revenue demonstrated the range and diversified income streams across the Group’s businesses, adequate to cover the elevated operating and funding costs.
In the period under review, the NFI portfolio grew by 59.2 per cent to KSh14.8 billion, coming from service fees through enhanced digital capabilities with 99 per cent of customers conducting their transactions from secured digital channels.
Costs increased by 46.1 per cent from the consolidation of TMB and expenditure to support additional revenues generated, while provisions rose by 99 per cent due to increased credit risk and the impact of forex devaluation in Kenya.
The ratio of non-performing loans stood at 17.5 per cent, largely driven by downgrades from the KCB Kenya business, with the Group focusing on recovery efforts and proactive management of the lending portfolio management to improve the asset quality.
Customer loans were up by 32 per cent to KSh928.8 billion, from increased lending across the Group, while customer deposits rose by 41.5 per cent to KSh1.20 trillion mainly from additional deposits from the existing businesses.
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