KCB Group PLC recorded a 54% growth in total assets to KShs.1.86 trillion in the first half of the year ending June 30, 2023, as net profit closed at Sh16.1 billion.
The balance sheet growth was driven by consolidation of Trust Merchant Bank (TMB) acquired in December 2022 and increase in customer deposits to Sh1.47 trillion, underpinning the customer confidence in our brand.
The loan book increased by 32% to Sh964.8 billion from Sh730.3 billion in the half year 2022.
KCB Group CEO Paul Russo said, "Despite a challenging economic environment across our operating markets, the business remained resilient delivering a strong balance sheet and increased contribution from regional businesses. Profitability was under pressure in the first half from increased funding costs on higher market deposits rates, prudent provisioning on legacy credit facilities, and provisions for legacy legal claims at NBK."
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Revenue grew by 22.2% to Sh 73.1 billion, driven by consolidation and growth of TMB, growth in customer loans, and non-funded income (NFI). The NFI stream was propelled by fees and commission as well as sustained growth of digital channel transactions and volumes.
Profit after tax was greatly impacted by aggressive provisioning on facilities in KCB Kenya, inherited legal claims in National Bank of Kenya (NBK), and staff restructuring costs incurred in KCBK and NBK being an investment to right size the organizations.
The Group also prudently raised its loan loss provisions on foreign currency-denominated credit facilities on account of a challenging operating environment,
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