Lender KCB Group PLC has reported a 54% asset growth to KES 1.86 trillion in H1 2023, with a net profit of KES 16.1 billion. The balance sheet change came from Trust Merchant Bank (TMB) consolidation (acquired in December 2022) and an increased customer deposit of KES 1.47 trillion.
Its loan book rose 32% to KES 964.8 billion from H1 2022, supporting customer business growth. Revenue grew by 22.2% to KES 73.1 billion, driven by TMB consolidation, customer loan growth, and non-funded income. Profit after tax was affected by provisions on KCB Kenya facilities, inherited National Bank of Kenya (NBK) legal claims, and organization resizing costs in KCBK and NBK.
According to the Group, a challenging environment increased loan loss provisions on foreign currency credit facilities.
“Despite a challenging economic environment across our operating markets, the business remained resilient delivering a strong balance sheet and increased contribution from regional businesses. Profitability was under pressure in the first half from increased fundi g costs on higher market deposits rates, prudent provisioning on legacy credit facilities, and provisions for legacy legal claims at NBK,” said KCB Group CEO Paul Russo.
“Looking ahead, noting the actions we have taken and with significantly improved liquidity, business focus is on accelerated performance in the second half of the year while supporting the distressed customers” he added.
In June, KCB Group signed an Africa-wide deal with the Pan-African Payment and Settlement System (PAPSS) to streamline cross-border transactions. This step made KCB the first East African bank to join this secure platform, enhancing transaction speed, affordability, and reliability. The partnership is set to boost intra-African trade and payments.
