Kenya Commercial Bank (KCB) has registered a 102 percent profit in half-year earnings in the first six months of the year, the lender has revealed.
The bank recorded a Ksh. 15.3 billion profit in the first six months of the year up from Ksh. 7.6 billion recorded in a similar period in 2020. KCB Bank has attributed the surge in profit to better-operating conditions, high returns, and lower provisions charge.
“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. The business is well-positioned to catalyze the ongoing economic recovery as well as benefit from this resurgence, KCB Chief Executive Officer Joshua Oigara said in a statement.
In the first six months of the year, the bank’s revenues increased by 14 percent fueled by a surge in interest income owing to a growth in gross assets and a lesser cost of funding.
In the period under review customer deposits increased by 4 percent to Ksh. 786.03 billion while total assets stood at Ksh. 1.02 trillion up from Ksh. 953 billion recorded in a similar period in 2020.
Total income grew to Ksh. 51. 2 billion up from Ksh. 44.2 billion recorded in 2020 while loans disbursed by the Group increased by 9 percent to Ksh. 606.9 billion. In the period under review, operating costs increased by 7 percent owing to increased staff costs.
The group’s stock of non-performing loans closed the half at Ksh. 95.7 billion, up from Ksh. 83.9 billion last year.
“Most of this increase occurred during the second half of last year, highlighting the strain on customers and their business because of the healthcare crisis,” the statement reads.
KCB is however optimistic that it will realize its three-year banking strategy which focuses on enhancing digitization and improving customer experience.
“While the pandemic is still in our midst, the rollout 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,” KCB Group Chairman Andrew Kairu said in the statement.