
KCB Group PLC has unveiled its financial results for the fiscal year 2023 (FY’2023), disclosing a net profit of Ksh37.46 billion.
This marks an 8.3% decrease from the preceding year, unveiling a mixed performance encompassing strong growth in certain sectors counterbalanced by declining profitability and escalating non-performing loans.
KCB Group witnessed significant growth in both loans and deposits. Loans and advances, which represent the money the bank lends out to its customers, increased by 26.95% to reach Ksh 1.09 trillion.
KCB Bank Kenya caters to a wide range of financial needs with their diverse loan portfolio. Individuals seeking larger loans can have access to unsecured loans that offer up to Kes 8 million without requiring collateral.
Qualification for these loans hinges on a steady income, a valid Kenyan ID or passport, and a minimum of 3 months as an active KCB account holder.
For those who prioritize speed and convenience, kcb mobile loans provide a solution. Accessible through the kcb bank app and the kcb bank ussd (*522#) service, these loans boast flexible limits with shorter terms typically attracting lower interest rates.
This allows borrowers to access the credit they need while managing repayments efficiently.
KCB acknowledges the significance of investment groups, or chamas, in Kenya’s economic landscape. The Tuungane Investment Loan specifically caters to these groups, empowering them to pursue their financial goals.
Chamas can access financing ranging from Kes 500,000 to Kes 250 million to invest in a variety of ventures, including bonds, shares, property, agribusiness, or construction.
To qualify, the chama must have 5 to 50 members, demonstrate a strong ability to repay the loan, and possess a positive banking history.
On the flip side, customer deposits surged by an impressive 48.92% to Ksh 1.69 trillion. This demonstrates growing trust in KCB as a safe haven for savings, providing the bank with a strong capital base for future lending activities.
Despite the positive loan growth, a concerning aspect is the rise in non-performing loans (NPLs) by 35.04% to Ksh 208.30 billion. NPLs are loans that are either in default or are unlikely to be repaid in full.
This increase suggests that a growing number of borrowers are struggling to meet their loan repayment obligations.
This could be due to various factors, such as rising interest rates, economic slowdown, or individual financial difficulties.
KCB Group’s total operating income, which represents revenue generated from its core banking activities, increased to Ksh 165.24 billion indicating growth in the bank’s overall business.
However, operating expenses also rose significantly, reaching Ksh 116.79 billion due to increased investments in technology, branch expansion, and staff costs.
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The Return on Equity (ROE) also dipped to 17.8%. ROE is a profitability ratio that measures the bank’s return on shareholder investments. The lower ROE suggests a decrease in shareholder value.
As a result, the bank will not be paying out any dividends for the year under review. This decision prioritizes retaining capital to strengthen the bank’s financial position.
The report also highlights the strong performance of KCB Group’s subsidiaries, particularly the DRC business, which witnessed a 69% revenue increase.
The combined contribution of subsidiaries to profits before tax reached Ksh 21.75 billion, showcasing their growing importance to the group’s overall performance.
Looking ahead, KCB Group CEO, Paul Russo, expressed optimism for 2024. The bank has plans to stabilize its financial performance, potentially by addressing the NPL issue and controlling operational costs.
KCB Group Plc boasts a substantial financial footprint with an asset base of US$12.84 billion (KSh 1.86 trillion). This strong foundation allows them to be a major player in the East African financial sector.
Beyond its flagship Kenyan bank, KCB Group encompasses various regional subsidiaries, and a network of associate companies. They include KCB Bancassurance Intermediary, KCB Investment Bank, and KCB Asset Management.
KCB Group’s reach extends throughout the region with the largest branch network, boasting 598 branches, 1,318 ATMs, and over 33,000 POS/Merchants and agents offering 24/7 banking services.
Currently, Access Bank PLC and KCB Group PLC have officially entered into a binding agreement for a full ownership of National Bank of Kenya Limited from KCB.
This agreement paves the way for Access Bank to acquire a 100% stake in National Bank of Kenya Limited (NBK).
For individuals seeking KCB branches or services, locating the nearest branch is made easy with the bank’s extensive network. Additionally, customers can utilize the kcb bank app for convenient access to banking services, including mobile loans and account management.
For inquiries or assistance, you can reach out to the bank through the kcb bank contacts +254711087000, +254732187000, and +254202287001.
Moreover, customers can make transactions seamlessly using the kcb paybill numbers, 522533 and 522522. As part of international transactions, kcb swift code is KCBLKENX, ensuring efficient financial interactions across borders.