NBK lifts KCB quarterly profit to Ksh.6.3 billion


NBK lifts KCB quarterly profit to Ksh.6.3 billion
KCB Group CEO and Managing Director Joshua Oigara during the launch of the KCB Q1 2020 Financial Results on May 20

KCB Group’s recent acquisition of the National Bank of Kenya (NBK) made the difference as it marked an 8.6 percent growth in profit for the first quarter to Ksh. 6.3billion.

NBK earnings between January and March 2020 topped Ksh. 155million from Ksh. 66.3million an year ago as KCB Bank profit remained flat at Ksh. 5.5billion in the period from Ksh. 5.6billion.

The group’s growth in the period was largely attributable to non-interest funded income which soared 31.7 percent in three months to Ksh. 7.9billion on higher loan fees and FX trading income.

Interest income meanwhile rose by a lesser 20.2 percent to Ksh. 20.2billion from 16.8 billion taking the group’s total operating income in the period to Ksh. 23billion.

Subsequently, the group’s earnings per share (EPS) jumped to Ksh. 7.79 from Ksh. 7.53.

However, KCB Group Chief Executive Officer Joshua Oigara termed the performance underwhelming even as he expects the ongoing Covid-19 pandemic to yield in a tougher operating environment.

“The operating landscape has further been exacerbated by COVID- 19 immediately shifting our focus to supporting our customers through the crisis, pursuing business continuity and the safety and well-being of our staff and all other stakeholders,” he said.

“We expect performance in the next two quarters to be impacted as the crisis is affecting the ability of customers to service their loans and reducing the demand for credit. We have taken measures to conserve out capital, manage costs and keep a keen eye on liquidity.”

On his part, NBK Managing Director Paul Russo lauded the resilience of the bank which saw a further Ksh.3 billion capital injection from KCB lifting its liquidity position to 45.7 percent.

“We remain optimistic about the long-term future and sustainability of the bank. The main priority for us now is cushioning our customers from the effects of the COVID-19 pandemic while pursuing innovations across offerings, revamping our digital channels and exploring strategic partnerships,” he said.

KCB further inched closer to its Ksh.1 trillion balance sheet position from its acquisition of NBK as total assets soared to Ksh.947 billion from Ksh.898.6 billion in December.

Net loans and advances to customers stood at Ksh.553.9 billion from Ksh.464.3 billion while customer deposits jumped to Ksh.740.4 billion from Ksh.552.2 billion.

Gross non-performing loans (NPLs) however swelled to Ksh.66.2 billion from the consolidation of NBK books even as KCB Bank marked growth in its bad loans on a quarterly basis to Ksh.37.4 billion from Ksh.35.9 billion in December.

NBK bad loans were flat at Ksh.25.1 billion from the end of 2019.

For Citizen TV updates
Join @citizentvke Telegram channel



Video Of The Day: | BULLDOZERS FOR SANITIZERS | Families remain in the cold after evictions from Kariobangi sewage estate

Avatar
Story By Kepha Muiruri
More by this author