KCB first-quarter profit up 53 percent to Sh9.8 billion
KCB Group first-quarter profit has increased by 53 percent to Kes9.8 billion from Kes6.4 billion on higher income.
The Group’s operating income has grown by 26 percent to Kes29 billion from Kes23 billion in March last year while non-funded income rose by 47.6 percent to Kes 9.3 billion from Kes 6.3 billion.
Net interest income grew by 18 percent to Kes19.7 billion driven by an increase in net loans and advances coupled with growth in investments in government securities.
“A relentless focus on our strategy has enabled us to maintain robust asset growth and deliver a healthy return on our investments. We have effectively demonstrated our combined abilities and competencies in managing and responding to the impact of the healthcare crisis across all our markets,” said KCB Group CEO and Managing Director Joshua Oigara.
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In the quarter, KCB Group cut provisions by 27.5 percent from a similar period last year largely due to a drop in corporate and digital lending impairment charges after Covid-19 related provisions were recognized in the full year of 2021.
Further, customer deposits increased to Kes845.8 billion, a 12.9 percent jump on proactive deposit mobilization strategy across our markets, the lender said.
These deposits were utilized to fund net loans and advances which went up 18 percent largely on account of improved corporate and retail lending to close the period at Kes704.4 billion.
Earlier this month, KCB launched its new banking subsidiary, BPR Bank Rwanda Plc following the amalgamation of KCB Bank Rwanda and Banque Populaire du Rwanda (BPR).