Kenya Commercial Bank (KCB) Group has announced that it made a net profit of KSh16 billion in the first quarter of 2024, which is the same amount the bank made in the same period last year. This comes even as the bank recorded a 53 percent increase in profit before tax, which rose from KSh13.85 billion to KSh21.16 billion. The new figure shows that the bank made more money before tax, but this did not reflect in the final net profit.
KCB, one of Kenya’s biggest lenders, saw its net interest income rise by 40.8 percent to KSh31.06 billion in the three-month period. This was an increase from KSh22.06 billion in the same quarter of 2023. According to the bank, this growth came from more lending to customers and better interest rates on loans and investments. The bank’s gross loan book increased by 12.2 percent to KSh1.13 trillion, showing that it is giving out more loans to individuals and businesses across the region.
Despite these positive numbers, the bank also made higher provisions for possible loan defaults. The loan-loss provision rose to KSh6.3 billion from KSh4.12 billion. This means KCB set aside more money to cover loans that may not be paid back. The bank said this was because some loans were downgraded in Kenya and also due to the effect of converting foreign currency loans back to Kenyan shillings.
KCB’s total assets grew significantly, reaching KSh2 trillion, compared to KSh1.63 trillion in the first quarter of 2023. This strong growth in assets shows that the bank’s financial foundation remains solid. The bank operates in several African countries including Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo. This wide regional network continues to contribute positively to the group’s overall performance.
In March 2024, KCB reached an agreement to sell its Kenyan subsidiary, National Bank of Kenya, to Nigeria’s Access Group. This deal is still waiting for approval from regulators before it can be completed. The sale is part of KCB’s plan to focus more on its key businesses and improve efficiency across the group. According to the bank’s Chief Executive Officer, Paul Russo, KCB is concentrating on growth and expansion in markets where it has strong potential.
Mr. Russo has also highlighted that the bank is pushing forward with its digital transformation agenda and improving customer service. He believes this will help the bank become more competitive and meet the changing needs of clients across East Africa. Analysts say that despite the stable net profit, the significant growth in profit before tax and total assets is a sign that KCB is well-prepared to grow in the rest of 2024.
Financial experts are watching KCB closely, especially as competition in East Africa’s banking sector intensifies. With more banks looking to expand across borders and new financial technologies changing how banking is done, KCB’s ability to adapt will be key to its future performance.
The bank’s Q1 2024 performance shows that it is strong financially, even as it deals with loan risks and currency changes. The leadership under Paul Russo is pushing for strategic growth, better services, and efficiency. With its large asset base, growing loan book, and regional footprint, KCB remains one of the top financial institutions to watch in East Africa.
