KCB Group PLC revealed its robust Q3 2023 results, demonstrating significant growth and resilience amid economic challenges.
The bank witnessed a remarkable 61.5 percent increase in total assets, reaching KES 2.1 trillion by June 30, 2023, compared to KES 1.3 trillion in Q3 2022. This growth was fueled by 43 percent organic growth and a 22 percent increase from the inclusion of the new subsidiary, Trust Merchant Bank, setting a regional milestone as the first bank to surpass the KES 2 trillion mark in assets.
Net advanced loans surpassed KES 1 trillion, growing by 38.1 percent to KES 1.0 trillion from KES 758.8 billion in Q3 2022, reflecting the bank’s commitment to supporting business expansion for its customers. A key driver of the balance sheet growth was the substantial rise in customer deposits, increasing to KES 1.7 trillion from Q2 2023’s KES 1.5 billion, showcasing customer confidence in the KCB brand.
In the first half of the year, revenue experienced a notable uptick, rising by 27.3 percent to KES 117.3 billion from Q3 2022’s KES 92.1 billion. This growth was attributed to the consolidation of Trust Merchant Bank, along with the expansion of customer loans and non-funded income (NFI). The NFI stream, particularly fees and commissions, surged by 118.8% to KES 20 billion from Q3 2022’s 9.1 billion, driven by sustained growth in digital channel transactions and volumes.
Despite a marginal 0.4 percent increase in profit after tax to KES 30.7 billion in Q3 2023 from the previous year’s KES 30.6 billion, the company’s investments in modernizing hardware and application infrastructure impacted the result. Net non-performing loans saw a slight increase to KES 187 billion from Q3 2022’s KES 149.3 billion, but the NPL ratio dropped by 1.8 percentage points to 16.4 percent.
Group CEO Paul Russo acknowledged the challenging economic environment but emphasized the company’s resilience and the substantial contribution from regional operations. Russo stated, “With a solid and well-diversified balance sheet, we are on track to meet our full-year ambitions based on the improved performance in the third quarter, supported by resilient business segments and subsidiaries.”
Looking ahead, CEO Paul Russo expressed confidence in the bank’s strategic actions, improved liquidity, and a focus on accelerated performance in the final quarter of the year.
