Nairobi-based financial services holding Kenya Commercial Bank (KCB) Group reported a 131-percent surge in earnings in the first nine months of 2021, as profits increased to Ksh25.21 billion ($224.71 million) driven by the economy’s strong recovery and increased income.
KCB Group is one of East Africa’s largest commercial banking groups. Since its founding 125 years ago, it has grown into an industry leader and expanded its operations into Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia.
In addition to its core banking operations under the leadership of Group CEO Joshua Oigara, KCB Group owns the National Bank of Kenya, a Kenyan lender, and Banque Populaire du Rwanda (BPR) in Rwanda.
The group recorded a 16-percent increase in total income to Ksh79.9 billion ($712.2 million) on account of higher interest income, driven by increased earning assets and higher non-interest income thanks to larger transactional volumes and FX income and lowered funding costs.
Figures contained in the nine-month report revealed that the group’s profit reached Ksh25.21 billion ($224.7 million) compared to the KSh10.9 billion ($97.1 million) in profit reported last year.
The triple-digit growth in profit was the result of higher income and reduced provisions, as the economic recovery from the COVID-19 pandemic accelerated the group’s income during the period under review.
Oigara underscored that the group’s primary strategies, which include cost management, cash preservation and sustainable business growth, paid huge returns in the period.
He further explained that the group’s financial performance was supported by a strong economic recovery across key sectors and the support that it rendered to customers, which helped them navigate through the pandemic and subdued business environment.
As a result of the strong performance, KCB’s total assets increased by 15 percent to KSh1.12 trillion ($10 billion), driven by organic growth across its businesses and the acquisition of BPR in Rwanda.
In line with the triple-digit growth in earnings, the board declared an interim dividend of Ksh1.0 ($0.008911) per share, payable to shareholders on Dec. 9.
As of press time, Nov. 18, shares in the leading banking group were trading at Ksh45.5 ($0.40547), 2.13-percent higher than its opening price this morning.
At this price valuation, KCB’s market capitalization is Ksh138 billion ($1.23 billion).