NAIROBI, Kenya, Mar 20 – KCB Group net profit dropped by eight percent to Sh37.5 billion in the full year ending December 2023 compared to a similar period in the preceding year, attributed to increased costs and shilling depreciation.
This represents a fall of Sh3.3 billion from Sh40.8 billion registered in 2022.
For instance, consolidation of the DRC’s Trust Merchant Bank (TMB) subsidiary, voluntary retirement, and litigation fees pushed the cost to Sh83.2 billion from Sh59.4 billion in the review period.
“Provisions increased by 154.7% from the downgraded facilities in Kenya and additional provisions on foreign currency facilities from the depreciating Kenya Shilling against hard currencies,” the lender said in a statement.
However, the group’s total assets hit Sh2.17 trillion, representing a 40 percent jump, boosted by a growth in customer deposits.
Likewise, earnings expanded to Sh165.2 billion, buoyed by an increase in funded income from earning assets and non-funded income, which grew by 33.9 percent.
Net interest income also increased by 23.9 percent, withstanding the high cost of funds in the market.
“We had a fairly good run in the 12 months in the wake of difficult economic times, with most of the business lines achieving strong organic growth. We have extended a helping hand to our customers through our loan book to support them to navigate and accomplish their ambitions,” the group’s Chief Executive Officer, Paul Russo, said.
“As a result of growing customer trust in the brand, we saw deposits grow significantly during the period,” he added.
“Focus remained on robust cost management to give us room to invest in initiatives to drive growth and put the Group on a strong pedestal for better growth in 2024, supported by strong capital and liquidity buffers.”
