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KCB profit hits record Sh34.2bn
Customers being served at a Kenya Commercial Bank branch in Nairobi.
What you need to know:
- The lender’s costs went up 11.9 per cent to Sh47.8 billion from Sh42.8 billion.
- KCB Group Chief Executive Joshua Oigara is expecting the lender to up its performance.
KCB Group has posted a 74 per cent increase rise in profit after tax for the full year to December 2021, buoyed by an improving economy.
The lender’s profit after tax hit a record Sh34.2 billion compared to Sh19.6 billion a year earlier lifted by higher income and lower loan loss provisions. The bank lowered its loan loss provisions by more than half to Sh13 billion from Sh27.2 billion.
KCB’s revenues increased 13.5 percent to Sh108.6 billion boosted by higher net interest income, which grew 15 per cent to Sh77 billion.
Meanwhile, the lender’s costs went up 11.9 per cent to Sh47.8 billion from Sh42.8 billion largely driven by staff and organisational costs from its acquisition of Banque Populaire du Rwanda.
KCB Group Chief Executive Joshua Oigara is expecting the lender to up its performance this year due to ease in the effects of the pandemic.
“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,” said Mr Oigara.
“During the period, we deliberately focused on supporting customers to weather the healthcare storm. We expect good business momentum this year with a projected economic recovery across markets,” he added.
