KCB Group net profit in the first six months of the year to June 30, 2021 has surged 102% to hit Kshs. 15.3 billion from 7.6 billion recorded during a similar period last year.
Chief Executive Officer Joshua Oigara attributes the profit growth to improved economic activity, robust revenues, and lower provisions charge recorded during the period under review.
“We saw a strong first half of the year for the business with improved economic activity. The resilient and diversified nature of our business has helped us navigate the unfolding impact of the COVID-19 pandemic.
The business is well-positioned to catalyze the ongoing economic recovery as well as benefit from this resurgence,” said Oigara.
During the period under review the stock of non-performing loans reduced to Kshs. 83.9 billion compared to 95.7 billion last year despite the ratio of non-performing loans to gross loans rising to 14.3% from 13.7% in 2020.
Oigara said, “Provisions for the period were down 40% to Kshs. 6.6 billion as the COVID-19 related impairments had been recognized in the full year 2020, and the facilities restructured to cushion customers from the impact of the pandemic.”
The lender’s net loans and advances increased to Kshs. 606.9 billion during the period, a 9% growth compared to Kshs. 559.9 billion last year.
Increased loans saw the Group’s net interest income expand to Kshs. 36.4 billion from Kshs. 31 billion last year.
The Group attained a historic milestone as its balance sheet grew 7% during the half year period to reach Kshs. 1.02 trillion from Kshs. 953 billion, becoming the second bank in Kenya after Equity Group to have one trillion in total assets.
This was supported by customer deposits which surged 4% to Kshs. 786.03 billion mainly due to current and savings accoun
On the other hand shareholders’ equity grew 16% from Kshs. 132 billion to KShs. 153 billion on improved profit for the period.
National Bank of Kenya whose acquisition was completed in September 2019 registered a net profit growth of Kshs. 717. 6 million compared to a 381.3 million profit loss during the same period last year.