KCB Group’s net profit for the year ended last December rebounded to grow a record 74 percent to Sh34.2 billion, largely lifted by lower provisions against bad debts and increased revenue.
The lender’s net earnings had dropped 22 percent to Sh19.6 billion the year before on increased provisions for coronavirus-related defaults.
KCB Group’s #ticker:KCB net profit for the year ended last December rebounded to grow a record 74 percent to Sh34.2 billion, largely lifted by lower provisions against bad debts and increased revenue.
The lender’s net earnings had dropped 22 percent to Sh19.6 billion the year before on increased provisions for coronavirus-related defaults.
"We made significant progress in achieving our 2021 strategic targets which delivered a strong financial performance that was in line with gradual economic recovery across all markets," Group chief executive Joshua Oigara said in a statement.
"The third and fourth quarters were the turning point with a pick-up in lending activity even as the COVID-19 pandemic continued to impact on economic activity.”
The bank’s total income crossed the Sh100 billion for the first time, growing to Sh108.6 billion from Sh96.3 billion in the prior year.
KCB’s loan book grew 13.5 percent to Sh675.5 billion from Sh595.2 billion a year earlier, helping lift its total asset base to nearly Sh1.14 trillion, a 15.4 percent rise.
This is the first time the assets crossed the Sh1 trillion, partly on the successful acquisition of BPR bank in Rwanda at end of last July.
The lender has declared a final dividend of Sh2 per share or an aggregate of nearly Sh6.43 billion, bringing the total payout for the year to Sh3 per share, or Sh9.64 billion.
This is a rise from Sh1 per share or an aggregate of Sh3.2 billion last year, but it is still below Sh3.5 per share or a total of Sh11.2 billion in the pre-pandemic years.
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