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KCB Bank Uganda, a subsidiary of KCB Group, one of East Africa’s largest financial groups, reported that its net profit for 2022, grew by an impressive 344.6% from UGX7.4 billion in 2021 to UGX32.9 billion⏤the highest ever in the bank’s 15-year history in Uganda.
This was driven by a 30.5% rise in income, from UGX90.9 billion to UGX118.6 billion, largely on account of a 60.7% growth in interest income on loans and advances from UGX44.2 billion to UGX81 billion. Income from lending formed 60% of the bank’s total income in 2022.
KCB in 2022 pumped up its credit supply by 65.1%, lending UGX603.7 billion, up from UGX365.7 billion in 2021, an increase of UGX238 billion. Lending growth was on the back of a 35.9% growth in deposits⏤from UGX592.7 billion to UGX805.2 billion, a UGX212.5 billion surge.
Driven by the above, the bank’s total assets grew by 39% from UGX790.3 billion in 2021 to UGX1.1 billion⎯ a growth of UGX308.7 billion, ushering KCB into the ‘trillionaires club’⏤ CEO East Africa’s unofficially official club of banks with over UGX1 trillion in assets.
As of the end of December, there were only 12 banks out of 25 with over 1 trillion in assets. They are Stanbic Bank, Centenary Bank, Absa Bank of Uganda, Standard Chartered Bank, Equity Bank, dfcu Bank, Bank of Baroda, DTB Uganda, Housing Finance Bank, Citi Bank KCB Bank Uganda and Bank of Africa.
Edgar Byamah, the bank’s Managing Director/CEO attributed the bank’s strong growth in 2022 to a “resolve to embed agility and innovation and resilience as we continue to focus on creating value and relevance for our customers”.
“Our performance continues to be driven by a focus on organic growth, with significant progress and growth being registered across our key parameters of customer numbers, balance sheet size, profitability, and impact on the community,” Byamah said.
“It gives me great pleasure to report a growth in profit before tax of 102%. In the same period the bank crossed the UGX 1 Trillion balance sheet mark registering 39% growth in the bank’s total assets whilst remaining well capitalised. With over UGX 73 billion growth in the total shareholder’s equity, the bank remains well capitalised to facilitate the Ugandan economy’s growth,” he added.
On 16 November 2022, the Minister of Finance Planning and Economic Development in consultation with the Bank of Uganda increased the commercial bank’s minimum paid-up cash capital from UGX25 billion to UGX120 billion by 31 December 2022, and UGX150 billion by 30 June 2024. Minimum capital funds unimpaired by losses (core capital) was also increased to UGX120 billion by 31 December 2022, and UGX150 billion by 30 June 2024.
A customer-obsessed and execution-focused bank
KCB in 2022 increased its share capital from UGX85.2 billion to UGX122.2 billion. It also increased its core capital from UGX81.4 billion to UGX144.1 billion.
Looking ahead, Byamah said, the bank was basking on its refreshed purpose ⏤ “For People for Better” to “drive our values and behaviours to ensure a “Customer Obsessed and Execution-focused” culture.
“Our strategic priorities will be to continue driving our digital transformation with people and community at the heart of our endeavours. Sustainability too is at the heart of the Bank’s business strategy which is anchored on environmental, social, and financial sustainability pillars anchored on the platform of financial inclusion,” he said.
Constant Othieno Mayende, the bank’s Board Chairman, expressed gratitude to the bank’s stakeholders -shareholders, customers, staff, regulators and partners for the unwavering support and trust and pledge a better future for all”.
“We continue to reimagine the future at KCB, our focus is to be the preferred financial solutions provider in Africa with global reach. We understand that we live in a connected world and therefore, being flexible and open to change is paramount for our success,” he reiterated.