NAIROBI, Kenya March 17- KCB Group’s full-year profit rose by 74 percent to Shs 34.2 billion shillings in the financial year ending 2021 attributed to improved recovery across its markets.
The growth was attributed to increased income, cost management, and lower credit provisions which saw the Group post higher returns to shareholders.
Group CEO and MD Joshua Oigara said the firm made significant progress in achieving its 2021 strategic targets which delivered a strong financial performance that was in line with gradual economic recovery across all markets.
“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”
Income revenues increased by 13.5 percent to Shs.108.6 billion on account of a rise in net interest income which was up 15.0 percent to Shs 77.7 billion.
Non-funded income grew by 9.9 percent to Shs30.9 billion on increased customer transactions, FX income, and income from accelerated loan growth.
Costs went up by 11.9percent to Shs.47.8 billion from Shs42.8 billion on account of an increase in staff and organizational costs, consolidation of Banque Populaire du Rwanda (BPR), and inflationary adjustments across the group.
The ratio of non-performing loans (NPL) increased from 14.7 percent to 16.5 percent, signaling the longer-term effects of COVID-19 impact. Several key sectors, largely construction, hospitality, and manufacturing continued to come under pressure with slow recovery.
Provisions for the period reduced by 52 percent to close at Shs13.0 billion from KShs.27.2 billion a similar period last year. The decrease is largely due to lower corporate and digital lending impairment charges after the deliberate action on covid related provisions absorbed in the previous year.
The Group further grew its balance sheet with total assets rising by 15.4 percent to KShs.1.139 trillion, driven by organic growth across our businesses and acquisition of BPR. Customer deposits went up by 9.1% through acquisitions and additional customers in corporate and retail franchises across the Group.
