This archive report was first published on 25 May 2020.
Regional lender KCB Group has reported an eight percent growth in net profit during the three months period to March 31, 2020.
The growth was driven by the improved performance of its regional subsidiaries and the newly acquired National Bank of Kenya.
According to the bank's chief executive, Joshua Oigara, the group's profit after tax rose to Ksh6.26 billion ($62.6 million) from Ksh5.77 billion ($57.7 million) in the same period last year.
The bank's revenue was largely driven by fees and commissions charged on banking transactions and investments in government securities.
However, the bank has warned that its growth outlook in the whole of this year is not promising due to the expected impact of the Covid-19 pandemic on revenues.
The pandemic has seen lenders resort to loan restructuring to cushion borrowers from economic hardship, with governments implementing stringent measures to curb the spread of the disease.
"We are taking all the necessary precautions to safeguard the safety and well-being of our customers, staff and the general public in the wake of the pandemic," said Oigara.
"We expect our performance to be negatively impacted by the outbreak as business has been disrupted in all our markets. The crisis has taken toll on all segments of our customers, effectively suppressing demand for credit," he added.
Market analysts, however, expect the bank to weather the economic storm largely due to its strong capital buffers and liquidity position.
