KCB Group has reported a 49pc increase in profit after tax which has risen to Ksh 45.8 billion in nine months to September this year.
The growth from Ksh 30.7 billion reported over the same period last year was supported by higher revenues rose by 22pc to reach Ksh 142.9 billion shillings.
“Net Interest income grew by 24pc supported by improved yields and increased lending to key segments, significantly offset by increase in interest expense driven by high cost of funds. Non-Funded Income (NFI) was boosted by forex income, transaction fees and strong revenues from Trust Merchant Bank (TMB), our DRC-based subsidiary,” said the bank.
The bank’s regional subsidiary ecluding KCB Bank Kenya also reported improved profitability to contribute 36.6pc of of profit after tax and 34pc of total in total assets.
Stronger growth witnessed in customer deposits which stood at Ksh 1.5 trillion saw the group close the quarter with total assets amounting to Ksh 2 trillion.
Net loans and advances also grew to Ksh1.1 trillion aided by the growth in retail sector lending which the bank says outpaced the impact from the appreciation of the shilling on the foreign currency denominated loans.
“The Group continued to leverage its deep understanding of local markets and cultures, allowing us to provide tailored financial solutions to customers wherever they are in the region. We have made deliberate investments to support regional trade and connect millions of people across the world to opportunities on the African continent and beyond whilst making a positive social impact in the communities,” said Paul Russo, KCB Group Chief Executive Officer.
During the period under review, the group’s stock of non-performing loans hit Ksh 215.3 billion forcing the the lender to increase provisions by 12.2pc.
