NAIROBI, Kenya, May 24 – KCB Group posted a Sh9.75 billion profit after tax in the three months ending March this year, boosted by increased revenue from customer transactions.
Revenue increased by 26.9 percent to Sh36.9 billion from non-funded incomes across its network and the consolidation of Trust Merchant Bank (TMB).
The contribution of group businesses (excluding KCB Bank Kenya) to overall profitability was up to 35 percent from 17.2 percent as investments in regional businesses continued to pay off.
“The first quarter performance highlights the resilience of the business across the corporate and retail franchises. The regional businesses performed well, giving credence to the regional expansion strategy,” said KCB Group CEO Paul Russo.
“During the period, we continued to embed customer obsession across the Group to position it as the key pillar through which we deliver our strategy.”
In the period, customer loans went up 32 percent to Sh928.8 billion on increased lending across the group.
Likewise, clients’ deposits rose 41.5 percent to Sh1.20 trillion, coming from TMB and additional deposits from existing businesses.
The cost, however, increased by 46.1 percent from the consolidation of TMB and expenditures to support additional revenues generated.
“While the Group’s growth in the past has been majorly driven by Kenya, its future hinges on becoming a significant regional player. We therefore continued to bolster our capacity to match the meaningful role that we seek to play and become an undisputed leader in the region,” said KCB Group Chairman Andrew Kairu.
“We are optimistic about improved performance in the remaining quarters of the year despite the tough environment that has impacted on customers and the economy as a whole,” he added.
