KCB Group has posted a Ksh37.5 billion net profit for the full year ended December 2023, an eight per cent drop compared to a similar period a year prior.
The drop in profits has been attributed to increased costs and the depreciation of the Kenya shilling against major currencies during the trading period.
This is a drop of Ksh3.3 billion compared to the Ksh40.8 billion KCB Group recorded in the full-year period ended December 2022.
“Most regional currencies depreciated against the USD by double digits in 2023. Kenya recorded a narrower balance of payments deficit in 2023 compared to 2022,’ stated KCB Group Chief Executive Officer (CEO) Paul Russo.
KCB registered a 23.4 per cent jump in gross loans during the review period buoyed by households and businesses in trade, tourism and manufacturing sectors as 32.3 per cent of the jump in gross loans was recorded in subsidiaries outside Kenya.
The group’s total assets soared 40 per cent to Ksh2.17 trillion on growth in customer deposits and loans majorly at KCB Bank Kenya.
Customer deposits surged 48.9 per cent to Ksh1.7 trillion driven by organic growth in demand and savings deposits across all businesses.
Earnings grew to Ksh165.2 billion on increase in funded income from earning assets and non-funded income which witnessed a 33.9 per cent jump while net interest income recorded a 23 per cent increase.
“We had a fairly good run in the 12 months in the wake of difficult economic times, with most of the business lines achieving strong organic growth. We have extended a helping hand to our customers through our loan book to support them to navigate and accomplish their ambitions,” added Russo.
“As a result of growing customer trust in the brand, we saw deposits grow significantly during the period,” he added.
“Focus remained on robust cost management to give us room to invest in initiatives to drive growth and put the Group on a strong pedestal for better growth in 2024, supported by strong capital and liquidity buffers.”
KCB Group’s Non-Performing Loans (NPL) ratio stood at 17.3 per cent supported by the growth in gross loans. The increase in stock was driven by the impact on forex in the manufacturing sector and downgrades from the trade sector.