KCB Group posts record profit of KES 40.8 billion

KCB Group PLC has announced a record profit after tax of KES 40.8 billion for the full year ending December 2022.

This represents a 19.5% increase in profitability from the KES 34.2 billion recorded in the previous year.

The bank’s CEO, Paul Russo, attributed the strong performance to the company’s business strategy that is anchored on customer obsession, sharper execution, and a productive organizational culture.

“The strong performance for the year was as a result of our business strategy that is anchored on customer obsession, sharper execution, and a productive organisation culture. The business benefited from a vibrant core banking business, growth of new business lines and accelerated digital transformation to post this record performance”, said Russo.

“Overall, we have positive momentum, and we shall build on this and ensure that we make significant step change in culture and performance, across all our business units. Despite a challenging operating environment, the belief in our people, enhanced digital capabilities, impetus in our regional businesses and successful integration of Trust Merchant Bank (TMB)—our latest subsidiary in the Democratic Republic of Congo— makes a good case for better performance” he added.

Revenues for the year increased by 19.6% to KES 129.9 billion, driven by net interest income which grew by 11.5%, supported by earning assets and partially offset by an increase in interest expenses from higher costs of borrowing and interbank market rates. Non-funded income grew 39.8%, largely from trade finance income, lending fees, and commissions.

Costs were up 24.1% compared to the previous year due to increased business activities and the impact of BPR and TMB acquisitions. Provisions increased marginally by 1.7% compared to the previous year, reflecting the appropriateness in IFRS9 staging done in prior years.

On asset quality, the ratio of non-performing loans (NPL) stood at 17.3%, largely driven by downgrades from the KCB Kenya business. Gross NPLs stood at KES 161.2 billion. Although both the NPL ratio and stock show an increase compared to the previous year, there is a remarkable reduction from the peak numbers in June 2022.

Total assets stood at KES 1.55 trillion, growing 36.4% on higher loans and investment in government securities and funded by growth in customer deposits and additional borrowings. Customer loans increased by 27.8% to KES 863 billion from additional lending in the Kenya business, increased lending in the international businesses, and the acquisition of TMB. Comparatively, customer deposits hit the trillion shillings mark, increasing by 35.6% to KES 1.135 trillion, mainly from TMB and organic growth in the existing businesses.

Shareholders’ funds grew by 18.9% from KES 173.5 billion to KES 206.3 billion on improved and accumulated profits for the year to date. KCB Group’s capital base remained well within both internal and regulatory limits, with core capital as a proportion of total risk-weighted assets standing at 13.9% against the statutory minimum of 10.5%, and total capital to risk-weighted assets ratio at 17.1% against a regulatory minimum of 14.5%.

The Board has proposed a final dividend payout of KES 1.00 per share, subject to shareholder approval, in addition to an interim payout of KES 1.00 per share paid out in January 2023. This brings the total dividend payout for the year to KES 6.4 billion.

KCB Group Chairman Andrew Wambari Kairu emphasized the company’s significant investments in its regional expansion strategy, including the latest entry into the DRC through the acquisition of 85% of TMB. He stated that the investments made are key to accelerating the company’s future growth and commitment to delivering sustainable shareholder value.

“We have made significant investments in our regional expansion strategy among them, our latest entry into DRC through the acquisition of 85% of TMB. The investments made are key to accelerating our future growth and commitment to delivering sustainable shareholder value,”  he said.

AM Live

AM Live is NTV's morning current affairs show that sets the agenda for the day with insightful panels every weekday.

Business Redefined

Business Redefined is Kenya’s premier thought leadership platform for unpacking matters regarding economic and finance policy as well demystifying complex developments in the region’s capital markets.

Daily Politics

This is Daily Politics. Here we look into the ins and outs of everything Kenyan politics. We pull no punches and have no reason to sugarcoat anything that matters to Kenyans.

Entertainment

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Full Episodes

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Gumzo La Sato

Gumzo La Sato is a live social issues show that aims to create awareness about issues affecting the larger society. The discussions range from Parenting, Marital bliss and struggles, Oppression, violence, and all matters of the Heart.

Health Diary

Health Diary is a weekly show that highlights different types of diseases/conditions and seeks ways to prevent, treat/manage them. The show debunks this through real life stories and also feature specialists in different fields, to offer medical advice on the same.

Letter To My Younger Self

Letter To My Younger Self is a podcast where guests get to write a letter to their younger self, from which Maxine formulates questions to ask them during the hour-long show.

Mazao Talks

Mazao looks at agriculture and agribusiness

Nation Reports

Nation Reports is a weekly podcast offers an opportunity for listeners to interact with various reporters and journey with them as they unravel the biggest most emotive stories.

Paradise Lost

Paradise Lost peeks through the story of Louis Otieno, the times, and everything in between.

Podcasts

Podcasts

Speaking of GEN Z

Speaking of Gen Z brings you entertaining but meaningful conversations about a generation that is trying to navigate through adulthood. Join hosts Michelle, Jackie and Esther as they unravel all things Gen Z.

SportOn

Sport-On is a 30-minute sports magazine show on NTV and 3 hours on NATION FM. The show seeks to give the sports “fanatics” and “funatics” comprehensive and in-depth coverage of sports both locally and internationally.

Tech-over

The extent of technological growth is beyond mere acknowledgment; it has seamlessly integrated into our daily existence. A few years ago, the notion of paying electricity bills through mobile money or recharging with 'tokens' in Kenya seemed inconceivable. Online product sales were considered distant, and artificial intelligence is rapidly reshaping various facets of our lives. Amidst these technological leaps, those with a solid understanding of tech can navigate challenges, seize opportunities, and build a sustainable livelihood. Tech over Show aims to be the platform facilitating discussions among thought leaders, innovators, tech companies, and the government, addressing challenges and opportunities in Kenya's thriving tech industry.

Thamani

Thamani is a business show which is dedicated to emerging issues regarding micro, small and medium size businesses.

The Trend

A two-hour-long live show that airs on Fridays. The show focuses on what is current in the entertainment industry, controversial and popular across all media platforms targeting those aged between 25 and 35 years.

The trend podcast

The trend podcast highlights and captures the best of banter from #TTTT segment that airs every Friday on NTV. It's the TTTT EXTRA

The Wicked Edition

The Wicked Edition with Dr. King’ori seeks to address serious issues through humour and relatable wit. It is a two-part half hour show filmed in front of a live audience

Trending

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Twende

Twende is a travel show that highlights beautiful, unique, diverse locations, people, and cultures. The show offers fresh perspectives on familiar locations and memorable experiences in new ones.

Unscripted

This Saturday evening lifestyle show lets viewers share their stories and life experiences as openly & honestly for the purpose of shifting the culture of silence.

VIP Access

VIP ACCESS is Anyiko Owoko’s YouTube and podcast show on Music and Culture dedicated to promoting Africa’s most promising talent and creatives. This podcast grants you VIP access into timeless interviews while providing a platform for rising as well as established artists across the continent. Since launching in 2018, Anyiko has interviewed over 70 African music stars.

WADR

This weekly news show aims to have all sides of debate but not be constrained by it, listen to main voices in the contest but not allow them to hold the viewers hostage, entertain debate but allow push back with all due respect.

When death do us part

In this podcast, three widowers openly speak about the process of grief, how they found themselves exposed to the emotional turmoil of losing their wives, and how society still does not know how to deal with them.

Your World

Your World is a health, wellness and variety show. It provides a platform for audiences and experts to share their experiences on how to improve or manage health issues, across Kenya and the Africa region.

||