NAIROBI, Kenya, Sept 25 – Global rating agency S&P has affirmed KCB Bank Kenya’s ratings of B+/B in the long and short-term.
S&P further upheld the stable outlook for the Bank adding that the ratings are supported by the KCB’s resilient earnings amid regulatory changes in Kenya and challenging economic conditions.
“We believe that KCB Bank Kenya, notably its earnings position, is well positioned to withstand regulatory headwinds in Kenya and challenging economic conditions in some East African countries where the group operates,” the ratings agency said in its latest update.
KCB Group Chief Executive Officer and Managing Director Joshua Oigara said the Bank’s outlook reflects the Bank’s ability to meet its financial commitment and is well positioned to support the customer’s financial well-being.
“The rating is significant for the bank and we remain committed to continue improving our competitive position in key products and services across the region. I believe we are well positioned for growth and that innovation is a huge opportunity for us,” said Oigara.
The rating agency expects non-performing loans to improve gradually, stabilizing at around 8pc, while credit losses will normalize between 1.3pc and 1.5pc over the next two to three years.
KCB Group Plc profit after tax for the first six months of 2018 surged to Sh12.1 billion representing 18pc growth and reinforcing the lender’s solid growth prospects
The stable outlook on KCB mirrors that of Kenya which has a rating of stable B+/B outlook although the rating agency expects the country will continue to spend 50 percent of the GDP in debt repayment over the next four years.