KCB Group Reports Ksh30.7B Profit in Quarter 3, 2023

The KCB Group has reported a Ksh30.7 billion net profit for the nine months leading up to September 2023 up from the Ksh30.6 billion profit posted over the same period in 2022.

This coming from a strong growth in Quarter 3, 2023, where the group recorded a 34% growth in net earnings of Ksh14.6 billion as compared to Ksh10.9 billion over the same period in 2022. 

Deposits increased to Ksh1.7 trillion from Ksh922 billion in Quarter 3 2022 pushing up the balance sheet past the Ksh2 trillion mark to Ksh2.1 trillion, a record high for the region. 

This, the lender said, was driven by organic growth in demand and term deposits in the existing business and the consolidation of the group’s DRC subsidiary Trust Merchant Bank (TMB) which was acquired in December 2022. 

KCB Kenya accounts for the majority of the assets with Ksh548 billion invested outside Kenya. KCB subsidiaries in the region include;

• KCB Tanzania (56% increase in revenue to Ksh4.5 billion)
• KCB Uganda (63% growth in revenue to Ksh3.3 billion)
• KCB Burundi (16% growth in revenue to Ksh1.2 billion)
• KCB South Sudan (41% growth in revenue to Ksh1.9 billion)
• TMB Congo (Ksh18.1 billion revenue in Q3 2023)

The group recorded a 61% growth in transactions across channels to Ksh8.1 trillion with 59% of transactions by value being conducted through non-branch channels. 

Merchant POS transactions accounted for the biggest year-over-year increase at 99%, followed by mobile transactions at 59% and internet banking at 51%. Agency and ATM transactions increased by 13% and 43% respectively. 

Looking Ahead

"We are confident that with the current management team, KCB’s business will transform into a regional powerhouse," KCB Group Chairman Dr Joseph Kinyua stated.

Despite regional subsidiaries contribute significantly to results, Kinyua acknowledged the challenging environment.

"Looking ahead, it is foreseeable that the region will undergo pressure. As a business, we are monitoring these movements and aligning the business accordingly. We are working to position the businesses outside of Kenya, while still working to improve growth," he added.

The KCB stock price closed at Ksh20.75 on Wednesday, November 22, maintaining a two-week recovery after weeks of low performance. On the bank’s stock price that was heavily discussed on social media, Group CEO Paul Russo expressed confidence in its future performance.

"There are headwinds yes, but there are also opportunities in this market. The GDP growth is over 4%. More than ever before we have to be agile and confront things that we never had to before. To deal with these market challenges, we need three things - great people, technology, and partnerships," the CEO, added.

On the controversy over the banking sector move to risk-based loan pricing, Russo said “Risk-based pricing is about being able to correctly price risk that we previously didn’t have an appetite for.”