This archive report was first published on 24 August 2021.
On June 30, 2021, KCB Group reported a significant milestone – doubling its net profit for the six months despite the ongoing pandemic. In an exclusive interview, CEO Joshua Oigara spoke to James Anyanzwa about the lender's strategies that contributed to this remarkable achievement.
According to Oigara, three key factors played a crucial role in KCB's success: providing additional support to clients, loan restructuring, and strong growth in regional businesses. The lender's efforts to restructure loans in March 2021 have yielded impressive results, with 90% of customers now back to normal.
When asked about sustaining this good performance, Oigara expressed optimism, citing the growth of mobile money transactions, mobile loans, and the loan book. He also highlighted the acquisition of businesses in Rwanda and Tanzania as a potential bonus for the second half of the year.
Regarding loan loss provisions, Oigara noted that the reduction during the first half was largely driven by customers who were impacted by COVID-19 and are now complying with restructuring terms. The lender's coverage ratio has increased from 64% to 70%, indicating a more robust provision for non-performing loans.
While Oigara acknowledged a positive momentum in the banking industry, he cautioned that the sector is not yet fully out of the crisis. However, he remains optimistic about the future.
Looking ahead, Oigara emphasized KCB's universal banking capabilities, which enable the lender to serve large customers and small and medium-sized enterprises (SMEs). He highlighted the significant opportunities in the East African region, where the lender is poised to expand its operations.
