Regional lender KCB Group net earnings for the nine months to September grew by 131.44 percent to Kes25.21 billion on account of significant uptick in operating income.
The bank recorded a 15.57 percent increase in total operating income that closed the period at Kes79.91 billion.
“This is the strongest quarter for us since the Covid-19 pandemic struck 20 months ago, with clear signs of economic recovery across key sectors. While we are cautiously optimistic of the prospects, especially due to the dynamic nature of the healthcare crisis, we project that the worst is behind us,” said KCB Group CEO Joshua Oigara.
“Our focus was on cost management, cash preservation and driving sustainable business growth. Our resolve to support our customers to navigate the crisis has helped them pick up from the subdued business environment,” Mr Oigara added.
The lender’s third quarter disclosures show that KCB Group recorded 53.39 percent drop in loan loss provisions to Kes9.33 billion.
Customer deposits also increased by 11.19 percent to Kes859.10 billion largely due to economic recovery in Kenya while the loan book expanded by 12.87 percent to close at Kes651.82 billion on account of improved loan uptake in Kenya, Uganda and Rwanda markets.
In the period, the lender’s non-interest income grew faster than its non-funded income stream.
Non-funded income from fees and commissions posted a 10.29 percent surge to Kes23.47 billion while interest from loans and government securities saw the Group’s interest income jump 16.19 percent to Kes73.53 billion.
Further, the easing of bad loan stock in the Group’s subsidiaries: National Bank of Kenya, Rwanda and Tanzania, helped improve the bank’s Non-Performing Loan ratio to 14.94 percent from 15.29 percent reported in September 2020.
Subsequent to the impressive results, the directors have approved an interim dividend of Kes1 for every ordinary share of Kes1 held.
The Group is at the tail end of buying the majority stake in the African Banking Corporation Tanzania Limited (BancABC Tanzania) in Tanzania.
The Tanzania deal comes just months after the Group successfully acquired BPR in August where ongoing integration of the Kigali-based lender will see the full consolidation of BPR and KCB Bank Rwanda into a single unit.
The twin acquisition is expected to bolster the Group’s market share in these two key markets and grow the contribution of international businesses to the regional banking giant.
“We are making strategic investments to deepen our regional play while building a sustainable business for the future that is anchored on people, planet and profits,” noted Mr Oigara.