NAIROBI, Kenya, Aug 23 – KCB Group total assets grew 54 percent to Sh1.86 trillion in the six months to June this year, taking the spot as East Africa’s leading bank ahead of Equity Bank.
Its balance sheet growth was driven by the consolidation of Trust Merchant Bank (TMB), which was acquired in December 2022, and an increase in customer deposits to Sh1.47 trillion, underpinning customer confidence in our brand.
In the half year to June 2022, the financial institution’s assets stood at Sh1.5 trillion.
Equity Bank now trails KCB Group after it reported Sh1.63 trillion in total assets in the six months to June 2023.
“Despite a challenging economic environment across our operating markets, the business remained resilient delivering a strong balance sheet and increased contribution from regional businesses,” Group CEO Paul Russo said.
“Profitability was under pressure in the first half from increased funding costs on higher market deposits rates, prudent provisioning on legacy credit facilities, and provisions for legacy legal claims at NBK,” Russo added.
Whereas the loan book expanded by 32 percent to Sh730.3 billion, customer deposits grew by 61.9 percent, buoyed by TMB consolidation.
This helped push revenue to Sh73.1 billion in the review period, representing a 22.2 percent increase.
However, the bank’s profit after tax took a hit after dropping to Sh16.1 billion, attributed to inherited legal claims in kCB Kenya and staff restructuring, among others.
“Looking ahead, noting the actions we have taken and with significantly improved liquidity, business focus is on accelerated performance in the second half of the year while supporting the distressed customers,” Russo added.
