KCB posts sh.6.3 billion profit despite COVID-19 challenges

Group Chief Executive Officer of the Kenya Commercial Bank Group Joshua Oigara. The bank has

The Kenya Commercial Bank (KCB) on Wednesday reported a 6.3 billion shillings profit after tax in the first quarter of 2020 ending March.

This was an eight percent increase from the 5.8 billion shillings posted during a similar period last year.

The profit was driven by a stronger non-funded income lines, and interest income boost due to growth in loans, the bank said.

KCB managing director Joshua Oigara said the overall quarterly performance was however below expectations because of a tougher macroeconomic operating environment.

 “The operating landscape has further been exacerbated by COVID- 19 immediately shifting our focus to supporting our customers through the crisis, pursuing business continuity and the safety and well-being of our staff and all other stakeholders,” Oigara, said in a statement.

He said they expected the performance in the next two quarters to be impacted negatively because the crisis was affecting the ability of customers to service their loans and reducing the demand for credit.

“We have taken measures to conserve our capital, manage costs and keep a keen eye on liquidity,” he said.

According to the financials released on Wednesday, total operating income rose by 22 percent to sh.22.95 billion during the period, compared to sh.18.76 billion during a similar period in 2019.

Net interest income rose by 18 percent to sh.15 billion from additional investments in Government securities and lending.

“The crisis has taken toll on all segments of our customers, effectively suppressing demand for credit. We are re-calibrating our business to focus more on digital banking and excellence in customer experience to give our clients the best service under the current difficult circumstances,” said Oigara.