This archive report was first published on 19 August 2021.
Kenya Commercial Bank (KCB) has posted a remarkable 102 percent profit rise in its half-year earnings, reaching Sh15.3 billion. This significant increase is a testament to the bank's resilience and adaptability in the face of the COVID-19 pandemic.
According to the bank's statement, the profit rise can be attributed to improved economic activity, robust revenues, and lower provisions charge. KCB Chief Executive Officer Joshua Oigara attributed the strong performance to the bank's diversified business model, which has enabled it to navigate the challenges posed by the pandemic.
"We saw a strong first half of the year for the business with improved economic activity. The resilient and diversified nature of our business has helped us navigate the unfolding impact of the COVID-19 pandemic," said Oigara.
Notably, the bank's revenues increased by 14 percent, driven by higher interest income and lower cost of funding. Assets stood at Sh1.02 trillion, with customer deposits increasing by 4 percent to Sh786.03 billion. Loans were up by 9 percent to close at Sh606.9 billion, while total income increased by 13.7 percent to Sh51.2 billion.
However, the bank's loan provisions and asset quality did experience a slight decline, with the stock of non-performing loans closing at Sh95.7 billion. Despite this, the bank remains optimistic about its prospects, citing the rollout of vaccines globally as a positive development.
"While the pandemic is still in our midst, the roll out of a vaccine globally has brought hope that the crisis will soon be under control. The resilience and providence of our concerted efforts to reinforce the sustainability of our business have enabled us to support and walk with our customers, staff and other stakeholders," said KCB Group Chairman Andrew Kairu.
The bank is also poised to expand its regional presence through the acquisition of a majority stake in Banque Populaire du Rwanda PLC (BPR) and the African Banking Corporation Tanzania Limited (BancABC Tanzania) in Rwanda and Tanzania respectively.
