KCB Group’s Net Profit Jumps 69% in Q1 2024, Reclaiming Top spot in East Africa.

:Driven by  Kenya Commercial Bank boosting customer satisfaction and reducing friction by prioritizing automation, expanding self-serve channels, and streamlining loan applications.

KCB Group PLC’s net profit soared 69% to KShs. 16.5 billion in Q1 2024 from KShs. 9.8 billion, reclaiming its title as East Africa’s most profitable bank and solidifying its status as the largest lender by assets.

The Kenyan lender achieved this historic quarterly milestone with significant revenue growth across its network, closing Q1 2024 with a balance sheet of KShs. 2.0 trillion, up from KShs. 1.6 trillion the previous year.

The total revenues increased by 31.6% to KShs. 48.5 billion, mainly due to growth in both funded and non-funded income. Non-funded income, which accounted for 36% of total revenues, was boosted by higher transaction volumes, increased customer confidence, and the adoption of digital banking and alternative channels.

CEO Paul Russo stated, “Despite challenging conditions across the region, we achieved strong revenue performance by maintaining prudent credit, liquidity, cost, and risk management. Consumer deposits continued to grow, reflecting client confidence in our brand. Our investments in digital and payment capabilities, along with our regional expansion strategy, delivered impressive results.”

A key enabler of KCB Bank’s stellar performance was a three-year strategy hinged on digital leadership, prioritizing adherence to market standards and regulatory demands to strengthen operations.

 In April, Business Daily reported that the bank plans to hire 400 new workers across its regional operations, in line with the group’s investment in “digital leadership.

The latest Kenya Bankers Association customer satisfaction survey reveals that 45.7% of customers prefer fully automated or self-service platforms, including mobile, internet, and chatbots, for their banking services.

He added, “We leveraged group capabilities through facility syndication and centres of excellence to enhance operational efficiency. Our shared services model prioritized automation, expanding self-serve channels, and streamlining loan applications, boosting customer satisfaction and reducing friction. Looking ahead, we are optimistic about our prospects in all markets. We aim to leverage our strong relationships and brand to drive growth, guided by our 2024-2026 strategy: Transforming Today Together.”

KCB Group also operates in the Democratic Republic of Congo (CBK), Tanzania, Rwanda, South Sudan, Uganda, and Burundi.

In anticipation of Ethiopia’s financial services liberalization, KCB is eyeing potential acquisitions and conducting due diligence on two banks, revealed CEO Paul Russo at the Africa CEO Forum held in Kigali, Rwanda, on May 16-17.

Net interest income surged to 31.06 billion shillings from 22.06 billion shillings. Gross loans grew by 12.2% to 1.13 trillion shillings, with loan-loss provisions rising to 6.3 billion shillings from 4.12 billion shillings due to downgrades in Kenya and the impact of foreign currency translation. Total assets increased to 2 trillion shillings from 1.63 trillion shillings year-over-year. In March, KCB agreed to sell its Kenyan unit, National Bank, to Nigeria’s Access Group.

Net interest income surged to 31.06 billion shillings from 22.06 billion shillings. Gross loans grew by 12.2% to 1.13 trillion shillings, with loan-loss provisions rising to 6.3 billion shillings from 4.12 billion shillings due to downgrades in Kenya and the impact of foreign currency translation. Total assets increased to 2 trillion shillings from 1.63 trillion shillings year-over-year. In March, KCB agreed to sell its Kenyan unit, the National Bank, to Nigeria’s Access Group.

Keywords:KCB Group profit growth:Digital banking adoption:East Africa’s largest lender:KCB regional expansion:Net interest income surge