KCB bank Posts 8 percent growth in net Profit to Sh 6.3Billion

By Bernard Gitonga

KCB Group reported Sh6.3 billion in profit after tax in the first quarter of 2020 ending March, 8 per cent jump from the Sh 5.8 billion posted a similar period last year.

The lender attributed this growth to stronger non-funded income lines and interest income boost due to loan book growth.

KCB Group CEO and MD Joshua Oigara said the overall quarterly performance was however below expectations because of a tougher macroeconomic operating environment.

“The operating landscape has further been exacerbated by COVID- 19 immediately shifting our focus to supporting our customers through the crisis, pursuing business continuity and the safety and well-being of our staff and all other stakeholders,” said Oigara.

“We expect performance in the next two quarters to be impacted as the crisis is affecting the ability of customers to service their loans and reducing the demand for credit. We have taken measures to conserve out capital, manage costs and keep a keen eye on liquidity,” he added.

The bank’s operating expenses increased 22% to KShs.11.1 billion, from Sh9.1 billon on the back of NBK acquisition, increased depreciation in line with IFRS 16 and annual staff salary increments effected in Q1.