KCB profit jumps to Sh30.6 billion in nine months

KCB Bank’s  Kipande House branch along Kenyatta Avenue, Nairobi. [Elvis Ogina, Standard]

KCB Bank’s net profit rose 21.4 per cent to Sh30.6 billion in the first nine months of this year on the back of sustained growth from net interest and non-funded income.

This was a jump from Sh25.2 billion reported for the same period last year, with the listed lender continuing its recovery from the negative effects of the Covid-19 pandemic.

As a result of the improved performance, the bank’s board has proposed an interim dividend of Sh1 per share. “We are seeing strong revenue momentum across the corporate and retail business, which positions us to meet our full year outlook,” said KCB Group Chief Executive Paul Russo while releasing the results yesterday.

“Our focus has been on delivering value and support to our customers to help them navigate the tough
economic environment.”

The contribution of group businesses, which excludes KCB Bank Kenya, in the review period stood at 16.3 per cent, up from 15.2 per cent. This growth in the contribution by the regional subsidiaries was driven by new businesses and the impact of BPR Bank in Rwanda.

KCB, the second largest bank in the region by asset base, saw its total revenues grow by 15.3 per cent to Sh92.1 billion, mainly driven by the growth in non-funded income, which includes fees and commissions.

Non-funded income increased by a third on higher foreign exchange earnings and lending fees. Additionally, interest income grew mainly from increased earnings from loans disbursed during the period and investment in government securities.