KCB Group PLC posted Ksh9.8 billion in profit after tax for the first quarter 2023, supported by increased revenues.
The Group recorded a strong balance sheet growth; with total assets hitting Ksh1.63 trillion, rising on strong customer confidence, as focus shifted to supporting customers to navigate the hard economic environment while ring-fencing the business for prospects and growth.
Revenue increased by 26.9% to Ksh36.9 billion mainly driven by the non-funded income from customer transactions across the Group network and consolidation of Trust Merchant Bank (TMB); the Group’s newest subsidiary in the Democratic Republic of Congo. This demonstrated the range and diversified income streams across the Group’s businesses, adequate to cover the elevated operating and funding costs.
The contribution of Group businesses (excluding KCB Bank Kenya) to the overall profitability was up to 35 % from 17.2% as investments in regional businesses continued to pay off. The contribution to total assets improved to close the period at 38.2%.
“Our focus was on delivering value and support to customers to help them navigate the tough economic environment, while driving revenue growth for the Bank. The first quarter performance highlights the resilience of the business across the corporate and retail franchises. The regional businesses performed well, giving credence to the regional expansion strategy,” said KCB Group CEO Paul Russo.
“During the period, we continued to embed customer obsession across the Group to position it as the key pillar through which we deliver our strategy. We continuously pursued innovations and delivered products with leading value propositions. We are deliberate on driving stronger growth, on the back of delivering value to customers, growing the existing businesses, opening new frontiers and a tight cost management regime,” he added.
Customer loans were up by 32% to Ksh928.8 billion, from increased lending across the Group while customer deposits rose by 41.5% to Ksh1.20 trillion, mainly from TMB and additional deposits from the existing businesses.
Shareholders’ funds grew by 17% to Ksh214.8 billion from the increase in accumulated profits for the year to date.
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