KCB posts marginal growth in Q1 profit amid ballooning bad debt
A KCB branch in Nairobi. The bank's gross nonperforming loans rose to Sh30.44 billion. PHOTO | FILE
What you need to know:
During the quarter, the bank experienced a massive Sh7 billion growth in dud assets as gross nonperforming loans rose to Sh30.44 billion.
The increase arose from the Kenyan unit whose NPLs now total Sh26.1 billion from Sh19.3 billion last December.
East Africa largest commercial bank by assets KCB Group recorded a 6.1 per cent growth in after-tax profit in the first quarter of the year compared to last year against a Sh1 billion fall in deposits and a flat loan book.
In the quarter ending March 31, the bank had a net profit of Sh4.63 billion, up from Sh4.36 billion in the same period last year.
During the quarter, the NSE-listed lender experienced a massive Sh7 billion growth in dud assets as gross nonperforming loans (NPLs) rose to Sh30.44 billion for the group.
The increase arose from the Kenyan unit whose NPLs now total Sh26.1 billion from Sh19.3 billion last December.
The massive growth in bad debts present a major new challenge to the KCB Group especially given that the entire increase in NPLs is coming from the Kenyan unit.
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