Kenya: KCB registers 40 percent decline in profit due to COVID-19 pandemic


Devdiscourse News Desk | Nairobi | Updated: 13-08-2020 16:29 IST | Created: 13-08-2020 16:29 IST
Kenya: KCB registers 40 percent decline in profit due to COVID-19 pandemic
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  • Kenya

Kenya Commercial Bank has registered a 40 percent decline in its half-year after-tax profits to Sh7.6 billion, according to a news report by Capital FM.

The lender in a statement attributed the drop-in performance from Sh12.7 billion it posted in 2019 to increased provisions in the wake of higher credit risk due to the COVID-19 pandemic.

"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," said KCB Group CEO and MD Joshua Oigara.

He added that the group committed to cushioning its customers and other stakeholders after the pandemic shook the country's economy from March.

"When the virus hit home in March, we made a commitment to look after our customers, staff, and other stakeholders while pursuing business continuity. We intend to keep on this promise even under the current worsening operating environment," said Oigara.

The bank further reveals that it had restructured loan facilities worth Sh101 billion to cushion customers against the effects of the crisis.

Central Bank of Kenya announced that at least Sh 844.4 billion of loans in the wider banking sector were restructured by the end of June, to cushion borrowers from adverse effects of COVID-19.

The Group set aside Sh11 billion as provision expense for potential loan losses that could crystalize as a result of the coronavirus pandemic, compared to the Sh 3billion provision during a similar period last year.

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