KCB first quarter profit jumps to Sh9.9 billion

Joshua Oigara

KCB Group CEO Joshua Oigara (centre), chairman Andrew Kairu (right) and CFO Lawrence Kimathi during the announcement of the bank’s full-year results on on March 16, 2022. PHOTO | DIANA NGILA | NMG

KCB Group net earnings grew by more than half in the first quarter ended March, helped by higher interest and non-interest income and lower loan loss provisions.

The lender’s net profit in the period stood at Sh9.9 billion, up from Sh6.4 billion the year before.

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 Mr Oigara.

“Furthermore, a relentless focus on our strategy has enabled us to maintain robust asset growth and deliver healthy return on our investments,” said Mr Oigara.

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KCB net interest income grew by 18 percent to Sh19.7 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 Sh9.3 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 Covid-19 related provisions recognised in the full year 2021, said the lender.