Growth in total income and reduction in loan loss provision charge pushed performance by 74% in steady post COVID-19 recovery KCB Group Plc recorded a historic 74% rise in profit after tax for the full year ending December 2021, riding on economic recovery across markets.
Net profit grew to Kshs 34.2billion compared to Kshs 19.6billion a year earlier, on the back of increased income, cost management and lower credit provisions which saw the Group post higher returns to shareholders.
“We made significant progress in achieving our 2021 strategic targets which delivered a strong financial performance that was in line with gradual economic recovery across all markets. The third and fourth quarters were the turning point with a pick-up in lending activity even as the COVID-19 pandemic continued to impact on economic activity” “During the period, we deliberately focused on supporting customers to weather the healthcare storm. We expect good business momentum this year with a projected economic recovery across markets,” said Group CEO & MD Joshua Oigara.
Income Revenues increased by 13.5% to KShs.108.6billion on account of a rise in net interest income which was up 15.0% to KShs.77.7billion. Non-funded income grew by 9.9% to Kshs. 30.9billion on increased customer transactions, FX income and income from accelerated loan growth.
Costs went up by 11.9% to KShs.47.8 billion from KShs.42.8billion on account of an increase in staff and organisational costs, consolidation of Banque Populaire du Rwanda (BPR) and inflationary adjustments across the group. Other operating expenses increased marginally by 2.8% to close at Kshs 22.9B from Kshs 22.3B last year with improved cost management across the Group.
