June 14, 2024

KCB Customer Loans Hit Sh 1.02 Trillion in Q1 2024

KCB Customer Loans Hit Sh 1.02 Trillion in Q1 2024

KCB Q1 2024 loan portfolio grew 9.54%, with customer loans hitting Sh 1.02 trillion from the 928.82 billion recorded in Q1 2023. KCB’s loan portfolio has been on a remarkably consistent upward climb since 2019. Since then, the bank has witnessed impressive growth rates exceeding 7% in every Q1, with Q1 2020 seeing an impressive rise of 19.3%. Notably, the loan-to-deposit ratio improved to 67.78% from 77.62% in the same period last year.

KCB Group’s overall financial health witnessed a significant boost in Q1 2024. The Group’s total assets swelled by a remarkable 22.42%, reaching Ksh 1.99 trillion compared to Ksh 1.6 trillion in the previous year’s first quarter.

Customer deposits mirrored this growth trend, experiencing a substantial increase of 25.44% to reach Ksh 1.50 trillion, up from Ksh 1.1 trillion in Q1 2023. This significant rise in deposits provided the necessary capital to fuel KCB’s lending activities and support its overall financial operations.

The Group’s profitability also climbed to new heights in Q1 2024. Profit after tax witnessed a remarkable surge of 69%, reaching Ksh 16.48 billion from Ksh 9.75 billion in Q1 2023. A closer look at KCB’s profitability reveals further positive trends. Net interest income, which reflects the difference between interest earned on loans and interest paid on deposits, grew by a substantial 40.82% to Ksh 31.06 billion from Ksh 22.06 billion in Q1 2023.

Non-interest income, which comprises income generated from fees, commissions, and other sources outside of traditional lending and borrowing, also experienced positive growth, rising by 17.80% to Ksh 17.42 billion from Ksh 14.79 billion in Q1 2023.

The Group’s total revenue climbed by a commendable 31.6% to reach Ksh 48.49 billion, surpassing the Ksh 36.85 billion recorded in Q1 2023. This growth reflects a strong performance across all business segments, indicating KCB’s ability to generate income from various sources.

Operating expenses did increase to Ksh 21.01 billion from Ksh 18.88 billion in Q1 2023. However, the cost-to-income ratio, which measures the bank’s efficiency in converting revenue into profit, remained healthy at 43.33%.

While KCB Group’s overall performance in Q1 2024 was positive, non-performing loans, which represent loans that are in default or are unlikely to be repaid in full, increased to Ksh 205.32 billion from Ksh 176.47 billion in the previous year’s first quarter.

The kcb share price closed the first quarter of 2024 at Ksh 30.05, down from Ksh 35.50 recorded in Q1 2023. This represents a decrease of approximately 15.4%. The price-to-book ratio dropped to 0.42 in Q1 2024 from 0.55 in Q1 2023. The price-to-book ratio (P/B ratio) is a metric used to compare a company’s market value (share price) to its book value (net assets).