KCB Group PLC recorded $313.6 million (KShs.40.8 billion) in profit after tax in 2022 on higher funded and non-funded income streams, a 19.5 percent increase from KShs.34.2 billion reported in 2021.
Besides KCB Bank Kenya, other subsidiaries made an increased revenue contribution of 17 percent up from 13.9 percent in 2021, riding on organic growth and increased scale in the businesses.
For the year ending December 2022, the group recorded KShs.1.55 trillion in total assets and KShs.1.135 trillion in customer deposits, this is while customer loans increased by 27.8 percent to KShs.863 billion from additional lending in the Kenya business and international businesses, as well as the acquisition of the Trust Merchant Bank (TMB) in DR Congo.
Revenues increased by 19.6 percent to KShs. 129.9 billion, driven by net interest income from higher costs of borrowing and interbank market rates. Costs were up 24.1 percent compared to last year on account of increased business activities and impact of the former Banque Populaire du Rwanda (BPR) and TMB acquisitions.
Non-funded income grew 39.8 percent largely from trade finance income, lending fees and commissions.
Shareholders’ funds also grew by 18.9 percent from KShs.173.5 billion to KShs.206.3 billion on improved and accumulated profits for the year.
KCB Group CEO, Paul Russo, attributed the strong performance to a result of business strategy anchored on customer obsession, sharper execution, and a productive organisation culture.
"The business benefited from a vibrant core banking business, growth of new business lines, and accelerated digital transformation to post this record performance,” he said.
Russo noted that the group built on this positive momentum to make significant step changes in culture and performance across all business units.
"Despite a challenging operating environment, the belief in our people, enhanced digital capabilities, impetus in our regional businesses and successful integration of Trust Merchant Bank (TMB)—our latest subsidiary in the DR Congo— makes a good case for better performance” he added.
Key Corporate Developments
In December 2022, KCB announced the completion of the acquisition of TMB after receiving all the regulatory approvals and subsequently kicked off integration of the business to the Group.
In deepening its citizenship and social impact agenda, the KCB Foundation gave scholarships to over 1,300 needy students who sat for the 2022 Kenya Certificate of Primary Education (KCPE) examinations and joined various secondary schools countrywide last month.
The Foundation has set aside KShs.700 million to support the 2023 scholarships cohort through secondary and tertiary education. On the sustainability front, KCB Bank screened loans worth over KShs. 336 billion for social and environmental risks while increasing its green portfolio in the past two years, bolstering its push for sustainable finance.
The Bank has also significantly cut its carbon footprint by 11.25 percent in its premises across the seven countries it operates in, on a deliberate push to reduce carbon emissions from its operations. KCB resource consumption was down by 17 percent, on the back of a systematic and deliberate push to reduce the use of fuel, water, electricity, and paper.
KCB unveiled a new brand purpose: "For People. For Better.” Through this purpose, KCB seeks to be the region’s undisputed financial services leader which puts people and their diverse needs first, to make life better for millions of the customers we serve.
Outlook
Andrew Kairu said: "We are bullish about 2023 and are gearing up to maximize on all the investments made and opportunities available in our various markets. We have in place a robust strategy that enables us to prudently deploy our capital and resources across the region to ensure superior returns from our investments.