KCB Profits Up By 74%, Hits Ksh 34.2 Billion
KCB Group Plc recorded a historic 74 percent rise in profit after tax for the full year ending December 2021,…
KCB Group Plc recorded a historic 74 percent rise in profit after tax for the full year ending December 2021, riding on an economic recovery across markets.
Net profit grew to 34.2 billion shillings compared to 19.6 billion shillings a year earlier, on the back of increased income, cost management, and lower credit provisions which saw the Group post higher returns to shareholders.
“We made significant progress in achieving our 2021 strategic targets which delivered a strong financial performance that was in line with gradual economic recovery across all markets.”
Revenues increased by 13.5 percent to 108.6 billion shillings on account of a rise in net interest income which was up 15.0 percent to 77.7 billion.
Non-funded income grew by 9.9 percent to 30.9 billion shillings on increased customer transactions, FX income, and income from accelerated loan growth.
Costs went up by 11.9 percent to 47.8 billion shillings from 42.8 billion shillings on account of an increase in staff and organizational costs, consolidation of Banque Populaire du Rwanda (BPR), and inflationary adjustments across the group.
The ratio of non-performing loans (NPL) increased from 14.7 percent to 16.5 percent, signaling the longer-term effects of COVID-19 impact.
Several key sectors, largely construction, hospitality, and manufacturing continued to come under pressure with slow recovery.
Provisions for the period reduced by 52 percent to close at 13.0 billion from 27.2 billion shillings a similar period last year.
The Group further grew its balance sheet with total assets rising by 15.4 percent to 1.139 trillion shillings, driven by organic growth across our businesses and the acquisition of BPR.
Customer deposits went up by 9.1 percent through acquisitions and additional customers in corporate and retail franchises across the Group.
The net loan book clocked KShs.675.5 billion on increased lending to key segments such as Micro Small and Medium Enterprises (MSMEs), consumers, and corporate.
Shareholders’ funds grew 20.6 percent from 142.4 billion shillings to 171.7 billion shillings on improved profitability for the period.