KCB Group Plc Reports KShs.10.9B in Q3 Net Earnings

Controlled Loan Growth, Robust Deposit Mobilization and Strong Non-branch Activity Headline Business Resilience Amid COVID-19 Pandemic.


KCB Group Plc after-tax profits for the nine months ending September 2020 stood at KShs.10.9 billion, 43% lower than the KShs.19.2 billion recorded last year.

The performance was largely impacted by increased provision on loans and advances in the wake of increased risk of credit default associated with the COVID 19 pandemic.

Review- Group CEO & MD Joshua Oigara. 

“This has been a challenging period for the business, staff, our customers and the economy. Our focus has been on keeping our staff and customers safe while at the same time giving business support to the communities we operate in as well as our customers. The pandemic has had a deep socio-economic impact and hence our decision to stand with our stakeholders,” said KCB Group CEO & MD Joshua Oigara.

The Group has enabled staff to work from home and implemented Covid19 protocols at all its branches and premises. For the period under review, the Bank restructured customer facilities worth KShs. 105 billion.

Key Financial Highlights. 

Performance Theme

Q3 2020

Q3 2019




Total Assets

KShs. 972.0B


Customer Deposit Growth



Net Loans Growth



Cost of Funds



% of NPLs



Income Growth

According to the financials released on Wednesday, total income was up 16% to stand at KShs.69.1 billion, compared with KShs.59.7 billion reported in September 2019. Net interest income increased 24% to KShs.47.9 billion from KShs.38.7 billion, riding on additional interest from investments in Government securities and lending.

During the period, non-funded income was slightly up from KShs.21.0 billion to KShs.21.3 billion, impacted by the reduction in loan disbursements to mobile customers during the period. The proportion of non-branch transactions stood at 98% up from 95% in Q3 2019 mainly driven by mobile, internet and agency banking.

At KShs.14.3 billion from KShs.14.1 billion last year, fees and commissions remained under pressure due to reduced transactions. Forex income too—closing the period at KShs.3.3 billion compared to KShs.3.5 billion— was subdued because of volatility of key currencies with prolonged lock downs and stagnating trade.

Cost Management

The Group has undertaken stringent cost management measures which have yielded good results to date. On a like to like basis, year on year operating expenses are 1% lower in 2020 compared to same period in the previous year.

Loan loss provisions was up to KShs. 20.0 billion from KShs.5.8 billion in the previous period, this has been driven by changes in customer risk profiles and impact of the pandemic on macroeconomic drivers.

Balance Sheet Growth

The Group’s balance sheet expanded 27% to KShs.972 billion, funded by customer deposits growth and acquisition of NBK. Net loans and advances grew 19% to close the period at KShs. 577.5 billion while customer deposits were up 32% to KShs. 772.7 billion.

Shareholders’ equity grew 12% from KShs. 121.2 billion to KShs. 135.9.1 billion. This was driven by the growth in earnings over the 12-month period to September 2020. Most of the key balance sheet ratios—liquidity, loan to deposit ratio and cost of funds—showed an improvement at 38.1%, 74.7& and 2.7% respectively. 

Asset Quality

The contraction in economic activity continued to hurt credit quality across segments.  The non-performing loans (NPLs) book rose to KShs.97.0 billion up from KShs 42.6 billion in 2019. The ratio of NPLs to total loan book increased to 15.2% from 8.3% in 2019, mainly due to consolidation of NBK and COVID-19 related downgrades.

Capital Position

The Group maintained healthy buffers on its capital ratios over the minimum regulatory requirement. The Group’s core capital as a proportion of total risk weighted assets closed the period at 17.8% against the Central Bank of Kenya statutory minimum of 10.5%. Total capital to risk-weighted assets stood at 19.6% against a regulatory minimum of 14.5%.


“While the pandemic is far from over and likely to continue into the next year, further straining the business and economy, we are projecting some recovery as the East Africa region finds some stability in living with the effects of the virus. We will continue to support our customers through the crisis and enhance initiatives geared towards ringfencing the business. Our approach is conserving cash and managing cost,” said Mr. Oigara.  

Key Developments—Global Ranking & IFC Credit Line

KCB Group was ranked at position 667 globally in The Banker’s Top 1000 World Banks ranking for 2020, climbing 40 places in a survey released in October. The Group was ranked number 1 in East and central Africa and received the award of safest bank in the East African region.

Additionally, KCB Bank Kenya in October received an approval for US$150 million, from the International Finance Corporation (IFC) as lead syndicator, to support the growth of the Bank’s sustainable climate finance portfolio and scale-up lending to micro, small and medium enterprises including women-owned businesses.


For further information, please contact Judith Sidi Odhiambo-Head of Corporate & Regulatory Affairs; email: 

About KCB Group PLC

KCB Group Plc is East Africa’s largest commercial Bank that was established in 1896 in Kenya. Over the years, the Bank has grown and spread its wings into Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (Rep). Further to the banking businesses in these markets, KCB Group owns National Bank of Kenya, a Kenyan lender. Today KCB Group Plc has the largest branch network in the region with 360 branches, 1,090ATMs and over 23,230  merchants and agents offering banking services on a 24/7 basis in East Africa. Additionally, KCB Group owns KCB Insurance Agency, KCB Capital Limited, KCB Foundation and Kencom House Limited as non-banking businesses. This is complemented by mobile banking and internet banking services with a 24hour contact center services for our customers to get in touch with the Bank. The Bank has a wide network of correspondent relationships totaling over 200 banks across the globe and our customers are assured of a seamless facilitation of their international trade requirements wherever they are.    

Business Nov 11, 2020