KCB Group Plc posted a resilient financial performance for the half-year ending June 30, 2024, despite challenging economic conditions characterized by elevated inflation rates and fluctuating currency values across the region, the lender said in a statement released by the Rwanda Stock Exchange.
The Group’s net profit edged higher by 7 percent to KSh20.1 billion ($135.5 million), compared to KSh18.8 billion recorded during the same period last year. This growth was primarily driven by a robust expansion in the loan book, which grew by 10 percent to KSh869.6 billion, and a significant increase in non-interest income, which rose 15 percent to KSh21.7 billion. The Group’s total operating income also rose by 12 percent to KSh59.4 billion, underpinned by strong performance in its retail and corporate banking segments.
Operating expenses, however, saw a marginal rise of 3 percent to KSh31.2 billion, driven by increased provisions for loan impairments as the bank adopted a conservative stance amidst rising default rates in key markets. Despite this, KCB Group managed to maintain a solid cost-to-income ratio of 52.6 percent, reflecting its ongoing efforts to enhance operational efficiency.
The Group’s asset quality remained stable, with the non-performing loan (NPL) ratio slightly improving to 13.2 percent from 13.5 percent in December 2023, bolstered by stringent credit management practices and successful recovery efforts.
KCB’s balance sheet continued to grow, with total assets increasing by 8 percent to KSh1.34 trillion, while customer deposits rose by 9 percent to KSh961.5 billion. The bank’s liquidity position remained strong, with a liquidity ratio of 44.7 percent, well above the regulatory minimum requirement.
“Our performance during the first half of 2024 underscores the resilience of our business model and the strength of our diversified portfolio. As we navigate through a volatile operating environment, we remain committed to delivering sustainable value to our shareholders and customers,” KCB Group Chief Executive, Paul Russo said.
Looking ahead, the Group expects to leverage its strong capital position, with a core capital to total risk-weighted assets ratio of 16.5 percent, to drive growth across its regional footprint, particularly in the digital banking space.
KCB Group Plc’s board of directors has declared an interim dividend of KSh1.00 per share, reflecting the Group’s robust financial health and commitment to returning value to its shareholders.
