NBK boosts KCB quarterly profit to Ksh.6.3 billion
KCB Group’s recent acquisition of the National Bank of Kenya (NBK) made the difference as it marked a 8.6 percent growth in profit in the first quarter to Ksh. 6.3billion.
The lender’s earnings between January and March 2020 topped Ksh. 155million from Ksh. 66.3million the previous year as KCB Bank profit remained flat at Ksh. 5.5billion in the period from Ksh. 5.6billion.
The group’s growth in the period was largely attributable to non-interest funded income which soared 31.7 percent in three months to Ksh. 7.9billion on higher loan fees and FX trading income.
Interest income rose by a lesser 20.2 percent to Ksh. 20.2billion from 16.8 billion taking the group’s total operating income in the period to Ksh. 23billion.
Subsequently, the group’s earnings per share (EPS) jumped to Ksh. 7.79 from Ksh. 7.53.
However, KCB Group Chief Executive Officer Joshua Oigara termed the performance underwhelming even as he expects the ongoing COVID-19 pandemic to yield in a tougher operating environment.