Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
KCB Group CEO and MD Joshua Oigara/FILE

Coronavirus

KCB H1 net profit drops by 40pc owing to COVID-19 shocks

NAIROBI, Kenya, Aug 13- Kenya Commercial Bank has registered a 40 percent decline in its half-year after-tax profits to Sh7.6 billion.

The lender in a statement attributed the drop-in performance from Sh12.7 billion it posted in 2019 to increased provisions in the wake of higher credit risk due to the COVID-19 pandemic.

 “The second quarter was the toughest in our recent history as the pandemic hurt economic activity across markets. Most of the key sectors were nearly shut down and our customers continue to face unprecedented challenges,” said KCB Group CEO and MD Joshua Oigara.

He added that the group committed to cushion its customers and other stakeholders after the pandemic shook the country’s economy from March

 “When the virus hit home in March, we made a commitment to look after our customers, staff and other stakeholders while pursuing business continuity. We intend to keep on this promise even under the current worsening operating environment,” said Oigara.

The bank further reveals that it had restructured loan facilities worth Sh101 billion to cushion customers against the effects of the crisis.

Central Bank of Kenya announced that at least Sh844.4 billion of loans in the wider banking sector were restructured by end of June, to cushion borrowers from adverse effects of COVID-19.

The Group set aside Sh11 billion as provision expense for potential loan losses that could crystalize as a result of the coronavirus pandemic, compared to Sh3billion provision during a similar period last year.

In the period under review, the bank’s total operating income was up 17 per cent to Sh45.0 billion compared to Sh38.6 billion in June 2019.

Advertisement. Scroll to continue reading.

Its total operating expenses were up 20 per cent on the back of the NBK acquisition.

The lender’s net interest income was up 22 per cent to Sh31.1 billion from Sh25.4 billion pegged on additional investments in government securities and lending.

KCB also saw its non-funded income surging by six per cent to Sh14.0 billion from Sh13.2 billion, driven largely by revenues from the digital proposition, growth in the forex income and additional income from National Bank of Kenya, the newest subsidiary of KCB Group.

KCB will not pay an interim dividend to its shareholders this year as a precaution.

1 Comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...