KCB Group PLC, East Africa’s largest commercial bank, has announced a robust financial performance with a net profit of KShs. 30.7 billion for the nine months ending September 2023.
This significant achievement is accompanied by the crossing of a major milestone, as the total assets of the bank surpassed the KShs. 2 trillion mark.
The financial report indicates a noteworthy increase in profitability, rising from KShs. 30.5 billion in a similar period last year.
The balance sheet expanded by an impressive 64.5%, reaching KShs. 2.1 trillion.
This growth can be attributed to the consolidation of the DRC-based subsidiary Trust Merchant Bank (TMB), acquired in December 2022, and organic expansion.
Despite challenges in the current economic and market environment, KCB Group displayed resilience, driven by diversified income streams.
Revenue increased by 27.3% to KShs. 117.3 billion, with non-funded income playing a significant role.
Group businesses (excluding KCB Bank Kenya) contributed 27.9% to overall profitability, showcasing the success of regional investments.
In a statement, Group CEO Paul Russo highlighted the organization’s strategic focus on resolving customer pain points and ensuring long-term growth.
Russo underscored the importance of continuous innovation and the delivery of products with leading value propositions.
He acknowledged the improved performance in the third quarter, supported by resilient business segments and subsidiaries.
Russo also mentioned substantial investments in modernizing hardware and application infrastructure to enhance capacity and systems capability.
KCB Group Financial Highlights
Income Side: Non-funded income increased by 38.7% to KShs. 42.4 billion, supported by enhanced investments in digital capabilities. Funded income rose by 21.6% to KShs. 74.9 billion.
Credit Management: Loan provisions increased by 118.1%, reflecting prudence in credit management.
Total Costs: Closed at KShs. 60.8 billion, influenced by legacy legal claims at NBK, staff restructuring expenses, and TMB consolidation.
Balance Sheet: KCB became the first bank in the region to surpass the two trillion shillings mark in asset size, reaching KShs. 2.1 trillion.
KCB Group Outlook and Corporate Developments
KCB Group Chairman Dr. Joseph Kinyua has expressed optimism about sustaining momentum, stressing the institution’s resilience amid a challenging operating environment and emphasized strong governance and risk management frameworks.
The bank’s commitment to its brand purpose, as showcased in the “Opening Doors of Opportunity” campaign, reflects its dedication to improving lives and creating positive change.
Furthermore, KCB Group’s sustainability efforts include scaling the 2Jiajiri program for youth empowerment and job creation in multiple markets.
In collaboration with the Swedish International Development Cooperation Agency (SIDA), KCB Bank Kenya introduced a KShs. 1 billion guarantee scheme to support SMEs in accessing credit.
A partnership with Mastercard resulted in the launch of the World Elite Exclusive Credit Card, offering exclusive benefits to premium and private banking customers.
The financial report demonstrates KCB Group’s agility and strength, setting a positive outlook for sustained economic growth in the region.