{"id":24361,"date":"2021-03-17T21:21:49","date_gmt":"2021-03-17T21:21:49","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/?p=24361"},"modified":"2021-03-17T21:21:49","modified_gmt":"2021-03-17T21:21:49","slug":"kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity","title":{"rendered":"KCB profit drops to Sh19.6b due to subdued economic activity"},"content":{"rendered":"<p><strong>AfricaPress-Kenya:<\/strong> KCB Group&#8217;s net profit fell by 22 per cent in the year ending December 2020, with the lender posting a profit after tax of Sh19.6 billion.<\/p>\n<p>This compared to Sh25.2 billion that the listed lender posted in 2019, in what was blamed mainly on the increased loan-loss provision.<\/p>\n<p>Besides increased loan-loss provisions, the bank also attributed the drop in profitability to subdued economic activity arising from the adverse effects of the Covid-19 pandemic.<\/p>\n<p>\u201cThe pandemic significantly affected our business across the markets we operate in, with most of them going into some degree of lockdown. The negative impact on the economy drastically reduced our customers&#8217; ability to operate necessitating loan restructures,\u201d said KCB Group Chief Executive Officer Joshua Oigara.<\/p>\n<p>Oigara said there were signs of increased\u00a0business activity\u00a0towards the end of the year, adding that he was confident the momentum will be maintained.<\/p>\n<p>With a patchy operating environment, there was a significant increase in credit risks which pushed up the lender\u2019s cost of risk, leading to an increase in loan provisions to Sh27.1 billion, in what was aimed at ensuring the company against default by borrowers hit by the pandemic.<\/p>\n<p>Non-performing loans (NPLs) or loans that have not been serviced for more than three months, rose to Sh96.6 billion from Sh63.4 billion in 2019. As a result, the ratio of NPL to total loans rose to 14.7 per cent, mainly due to Covid-19 related downgrades.<\/p>\n<p>Total income increased by 14 per cent to stand at Sh96 billion, compared with Sh84.3 billion reported in December 2019.<\/p>\n<p>The increase was driven by a 21 per cent growth in interest income from loans and earnings coming from government securities.<\/p>\n<p>Earnings from\u00a0government\u00a0securities went by 65 per cent compared to the previous year. Non-funded income from fees and commissions remained flat to close at Sh28.4 billion on the back of income from trading activities and strong forex earnings.<\/p>\n<p>The performance of non-funded income was partially subdued by the waiver on mobile transaction fees.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AfricaPress-Kenya: KCB Group&#8217;s net profit fell by 22 per cent in the year ending December 2020, with the lender posting a profit after tax of Sh19.6 billion. This compared to Sh25.2 billion that the listed lender posted in 2019, in what was blamed mainly on the increased loan-loss provision. Besides increased loan-loss provisions, the bank [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":24353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[7883,6446,1230,7882],"class_list":["post-24361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-financial-statements","tag-joshua-oigara","tag-kcb","tag-non-perfoming-loans"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>KCB profit drops to Sh19.6b due to subdued economic activity - kenya<\/title>\n<meta name=\"description\" content=\"KCB Group&#039;s net profit fell by 22 per cent in the year ending December 2020, with the lender posting a profit after tax of Sh19.6 billion.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"KCB profit drops to Sh19.6b due to subdued economic activity\" \/>\n<meta property=\"og:description\" content=\"KCB Group&#039;s net profit fell by 22 per cent in the year ending December 2020, with the lender posting a profit after tax of Sh19.6 billion.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-17T21:21:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/mystery_of_sh223_bil60523dd572df1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"660\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"KCB profit drops to Sh19.6b due to subdued economic activity\",\"datePublished\":\"2021-03-17T21:21:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity\"},\"wordCount\":336,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/mystery_of_sh223_bil60523dd572df1.jpg\",\"keywords\":[\"Financial statements\",\"Joshua Oigara\",\"KCB\",\"Non-perfoming loans\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-profit-drops-to-sh19-6b-due-to-subdued-economic-activity\",\"name\":\"KCB profit drops to Sh19.6b due to subdued economic activity - 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