KCB Group Posts KShs. 40.8 Billion in Full Year 2022 

KCB Group Posts KShs. 40.8 Billion in FY 2022 Net Profit,  Balance Sheet Crosses KShs. 1.5 Trillion Mark.  KCB Group PLC recorded KShs.40.8 billion in profit after tax for the full year  ending December 2022 on higher funded and non-funded income streams. 

This was a 19.5% rise in profitability from KShs.34.2 billion reported in 2021,  KCB said on Wednesday during the release of the financials. The profit before tax contribution of other subsidiaries excluding KCB Bank  Kenya increased to 17.0% (up from 13.9% in 2021), riding on organic growth  and increased scale in the businesses.  

Key Figures & Indicators  

Parameter 2021FY 2022FY Change 
PAT KShs.34.2 billion KShs.40.8 billion 19.5%
Revenues KShs.108.6 billion KShs.129.9billion 19.6%
Costs KShs.47.8 billion KShs.59.4 billion 24.1%
Total Assets KShs.1.14 trillion KShs.1.55 trillion 36.4%
Customer Loans KShs.675 billion KShs.863 billion 27.8%
Customer Deposits KShs.837 billion KShs.1.135 trillion 35.6%

“The strong performance for the year was as a result of our business  strategy that is anchored on customer obsession, sharper execution, and a  productive organisation culture. The business benefited from a vibrant core  banking business, growth of new business lines and accelerated digital  transformation to post this record performance”, said Mr. Russo.  

“Overall, we have positive momentum, and we shall build on this and ensure  that we make significant step change in culture and performance, across all  our business units. Despite a challenging operating environment, the belief  in our people, enhanced digital capabilities, impetus in our regional  businesses and successful integration of Trust Merchant Bank (TMB)

 Revenues increased by 19.6% to KShs. 129.9 billion, driven by net interest  income which grew by 11.5%, supported by earning assets and partially  offset by increase in interest expenses from higher costs of borrowing and  interbank market rates. Non-funded income grew 39.8% largely from trade  finance income, lending fees and commissions.  

Costs were up 24.1% compared to last year on account of increased  business activities and impact of BPR and TMB acquisitions. Provisions increased marginally by 1.7% compared to the previous year; a  reflection of appropriateness in IFRS9 staging done in prior years.  

On asset quality, the ratio of non-performing loans (NPL) stood at 17.3%,  largely driven by downgrades from the KCB Kenya business. Gross NPLs  stood at KShs161.2 billion. Whereas both the NPL ratio and stock show an  increase compared to prior year, there is a remarkable reduction from the  peak numbers in June 2022. 

On the balance sheet side, total assets stood at KShs.1.55 trillion, growing  36.4% on higher in loans and investment in government securities and  funded by growth in customer deposits and additional borrowings.Customer  loans increased by 27.8% to KShs.863 billion from additional lending in the  Kenya business, increased lending in the international businesses and the  acquisition of TMB. 

Comparatively, customer deposits hit the trillion shillings mark, increasing  by 35.6% to KShs.1.135 trillion, mainly from TMB and organic growth in the  existing businesses. Shareholders’ funds grew by 18.9% from KShs.173.5 billion to KShs.206.3 billion on improved and accumulated profits for the year to date.  

KCB Group capital base remained well within both internal and regulatory  limits. Core capital as a proportion of total risk weighted assets standing at  13.9% against the statutory minimum of 10.5%. Total capital to risk weighted assets ratio was at 17.1% against a regulatory minimum of 14.5%.

The Board has proposed a final dividend payout of KShs. 1.00 per share,  subject to shareholder approval. This is in addition to an interim payout of  KShs. 1.00 per share which was paid out in January 2023. This brings the  total dividend payout for the year to KShs. 6.4 billion.  

“We have made significant investments in our regional expansion strategy  among them, our latest entry into DRC through the acquisition of 85% of TMB. The investments made are key to accelerating our future growth and  commitment to delivering sustainable shareholder value,” said KCB Group  Chairman Andrew Wambari Kairu. 


Welcome! Login in to your account

Remember me Lost your password?

Lost Password