KCB Group posts Sh7.6b after tax profit on debt relief
BANKING: KCB Group has posted Sh7.6 billion profit after-tax for the first six months of 2020 from Sh12.7 billion from the previous year, on the back of debt relief.
The lender attributed the 40 per cent drop to increased provisions in the wake of higher credit risk due to the Covid-19 pandemic and said key sectors of the economy have not been operating well.
KCB Group Chief executive Joshua Oigara, the lender put in place intervention measures including restructuring facilities worth Sh101 billion to cushion customers and employees.
“The second quarter was the toughest in our recent history as the pandemic hurt economic activity across markets.
Most of the key sectors were nearly shut down and our customers continue to face unprecedented challenges,” Oigara said in a statement yesterday.
The debt-relief measures saw customers apply for expansion of credit lines and extension of loan tenures to keep them afloat.
The lender also waived fees associated with loan restructuring and those for mobile transactions below a thousand shillings.
“When the virus hit home in March, we made a commitment to look after our customers, staff and other stakeholders while pursuing business continuity,” said Oigara.
During that period, total operating expenses shot up 20 per cent on the back of the NBK acquisition.