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KCB Group Plc FY 2019 Profit after Tax up 5% to KShs.25.2B.

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KCB Group CEO & MD, Joshua Oigara (left), with, KCB Group Chairman, Andrew Wambari Kairu (centre) and KCB Group Chief Finance Officer, Lawrence Kimathi, during the 2019 Full Year Financial results announcements held at Radisson Blu hotel

Improved profitability and shareholder returns driven by loan growth, non- funded income, cost management and NBK acquisition.

KCB Group CEO & MD, Joshua Oigara (left), with, KCB Group Chairman, Andrew Wambari Kairu (centre) and KCB Group Chief Finance Officer, Lawrence Kimathi, during the 2019 Full Year Financial results announcements held at Radisson Blu hotel

KCB Group Plc. delivered improved profitability and higher returns to shareholders for the full year ended December 2019, posting a 5% jump in profit after tax to KShs.25.2 billion.

Net earnings increased from KShs. 24 billion in 2018 on the back of loan book growth, non-funded income from the digital banking and cost management initiatives across the business.

Key Financial Highlights

 Performance Measure 2019 vs 2018
ProfitabilityNet Profit – Up 5% to KShs.25.2B from KShs 24.0BTotal Operating Income- Up 17% from KShs.71.8B to KShs.84.3B
Operational EfficiencyOperating Expenses (excl provisions)- up 10.0% from KShs.35.0B to KShs. 38.5B.Cost to Income Ratio (excl. provisions) – 45.7%Cost of Funds- 2.8% from 3.2%
Balance Sheet PositionTotal Assets- up 25.8% from KShs.714.3B to Kshs. 898.6BTotal capital to risk-weighted assets- 19.0% (CBK min 14.5%)Core capital to total risk weighted assets- 17.2% (CBK min 10.5%)
Key RatiosNon Funded Income 33.4% from 32%Return on Equity -20.7%NPL Coverage- (IFRS)- 72.1% from 68.6%Liquidity Ratio- 37.1% from 33.3%
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