KCB Group net earnings grew by over half in the first quarter ended March, helped by higher interest, non-interest income and lower loan loss provisions.
The lender’s net profit in the period stood at Sh9.9 billion up from Sh6.4 billion the year before.
Outgoing CEO Joshua Oigara said the results reflected resilience in a tough environment.
“During the quarter, the business showed sustained resilience backed by our proactive approach towards driving income growth, managing liquidity, conservation of capital, and cost containment,” he said in a statement yesterday evening.
“Furthermore, a relentless focus on our strategy has enabled us to maintain robust asset growth and deliver healthy return on our investments,” the chief executive said.
KCB net interest income grew by 18 per cent to Sh19.7 billion driven by increase in net loans and advances coupled with growth in investments in government securities even as its non-funded income expanded by 47.2 percent to Sh9.3 billion.
Provisions decreased by 27.5 per cent from a similar period last year largely due to a drop in corporate and digital lending impairment charge after Covid-19 related provisions recognised in the full year 2021, said the lender.
This is Mr Oigara’s last financial reporting.
KCB Group on Tuesday appointed Paul Russo as its new chief executive officer, replacing Mr Oigara’s who exits after a decade. He joined KCB in 2011.
Mr Russo has been managing director of KCB’s subsidiary National Bank of Kenya.
Mr Oigara who will be available to support the new CEO in the interim has grown the bank through acquisitions and expansion of existing operations.
KCB commended Mr Oigara for his service. “He has left a solid legacy for the group across Africa and beyond that is dotted by transformation of millions of lives, enhanced financial inclusion across the region, digital banking innovations and has built a Group that is anchored on sustainable business practices,” KCB group chairman Andrew Wambari Kairu said on Tuesday.
KCB’s performance shows Kenyan banks could set new earning records this year after bumper profits last year attributed to the recovery of the economy from the Covid-19 pandemic.
Equity Group’s net profit grew 33.7 per cent in the first quarter ended March largely on the back of higher interest income.
The bank reported a net income of Sh11.5 billion in the review period, up from Sh8.6 billion a year earlier.