Outgoing KCB boss Oigara leaves bank’s 2022 Q1 profit at Ksh.9.9 billion, a 53% gain
KCB Group’s net earnings grew by 53 percent to Ksh.9.9 billion in the first quarter ended March 31, 2022.
This was helped by higher interest and non-interest income and lower loan loss provisions. KCB’s net profit in Mach 2021 stood at Ksh.6.4 billion.
Outgoing KCB chief executive Joshua Oigara said the results reflected resilience in a tough environment.
“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,” said Oigara.
“A relentless focus on our strategy has enabled us to maintain robust asset growth and deliver healthy return on our investments.”
KCB net interest income grew by 18 percent to Ksh.19.7 billion driven by an increase in net loans and advances coupled with growth in investments in government securities even as its non-funded income grew by 47.2 percent to Ksh.9.3 billion.
Provisions decreased by 27.5 percent from a similar period last year largely due to a drop in corporate and digital lending impairment charge after CCOVID-19 related provisions recognised in the full year 2021, said the lender.
KCB’s gross Non-Performing Loans (NPLs) grew by 33.4 percent to Ksh.130.9 billion as the slow recovery of the construction, hospitality and manufacturing sector deteriorates the lender’s asset quality.
KCB’s loan book has grown by 18 percent to Ksh.704.4 billion from Ksh.597.1 billion.
Customer deposits have meanwhile scaled by 12.9 percent to Ksh.845.8 billion from Ksh.749.4 billion.
KCB is holding out for resilience in the regional macro-economic environment to sustain growth through the year.