KCB Group Plc, one of East Africa’s largest financial institutions, has reported 86% growth in its half-year profit after tax for the period ending June.
The Group’s posted Kshs 29.9 billion in profit after tax compared to Kes 16.1 billion registered a corresponding period previous year. The outstanding profitability was driven by significant growth in revenue from funded and non-funded income streams.
In addition, the Group’s asset base grew by 6% from Kes 1.86 trillion to Kes 1.98 trillion backed by the stable customer deposits growth. Consequently, the Group retained its position as the most profitable and largest financial institution in the region.
Overall, the Group’s subsidiaries in Tanzania, Uganda, Burundi, Rwanda, and South Sudan recorded an increase in pre-tax profits and total assets by 37.8% and 34.4%, respectively. The contribution of the subsidiaries to the Group’s performance demonstrates the significance of its market diversification.
Following the strong performance, the Group resumed dividend payout of Kes 1.5 per share. The Group announced the interim dividend of Kes 4.8 billion, which is the biggest in its history.
The Group’s loans and advances jumped by 7% to Kes 1.03 trillion. Non-interest income for the review period surged by 35% as a result of increased leading and improved yields. In contrast, non-funded income rose by 21%. Provisions during the review period surged by 20%.
While revealing the results on Wednesday KCB Group’s Paul Russo said “We delivered a commendable first half of the year, despite strong headwinds in the operating environment, especially in Kenya, thanks to the goodwill and confidence from our customers and commitment by our staff. We were intentional in working with our customers and stakeholders to support them in navigating the difficult environment.”
KCB continues to cement its market dominance as demonstrated by the strong financial performance. Recently, the bank was ranked among Kenya’s top valuable brands by the UK-based consultancy Brand Finance.
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