KCB GROUP PLC

UN-AUDITED FINANCIAL STATEMENTS AND OTHER DISCLOSURES FOR THE PERIOD ENDED 31 MARCH 2023

KCB KENYA BANK

NATIONAL BANK OF KENYA

KCB GROUP PLC COMPANY

KCB GROUP PLC CONSOLIDATED

31-Mar-23

31-Dec-22

31-Mar-22

31-Mar-23

31-Dec-22

31-Mar-22

31-Mar-23

31-Dec-22

31-Mar-22

31-Mar-23

31-Dec-22

31-Mar-22

Kshs 000

Kshs 000

Kshs 000

Kshs 000

Kshs 000

Kshs 000

Kshs 000

Kshs 000

Kshs 000

Kshs 000

Kshs 000

Kshs 000

I. STATEMENT OF FINANCIAL POSITION

Un-audited

Audited

Un-audited

Un-audited

Audited

Un-audited

Un-audited

Audited

Un-audited

Un-audited

Audited

Un-audited

A. ASSETS

1.

Cash (both Local & Foreign)

7,012,428

10,332,230

8,528,043

1,355,093

1,432,365

1,091,995

-

-

-

30,475,370

29,290,313

18,647,891

2.

Balances due from Central Bank of Kenya

28,587,984

32,017,676

22,427,593

5,890,587

3,806,747

3,378,494

-

-

-

34,478,571

35,824,423

25,806,087

3.

Kenya Government and other securities held for dealing purposes

-

-

2,577,572

-

-

-

-

-

-

-

17,403,315

7,365,423

4.

Financial Assets at fair value through profit and loss

-

-

-

-

-

-

-

-

-

-

-

-

Investment securities:

-

-

-

5.

a) Held at amortized cost: a. Kenya Government securities

126,338,375

126,184,144

99,784,029

24,382,348

24,564,568

33,429,933

-

-

-

151,179,265

151,200,443

133,408,701

b. Other securities

-

-

-

303,831

295,081

-

-

-

-

31,263,261

13,321,996

9,484,978

b) Fair value through OCI: a. Kenya Government securities

77,326,775

77,640,039

91,405,803

22,827,274

23,831,380

18,193,460

-

-

-

100,922,453

102,147,970

110,237,643

b. Other securities

2,126,118

2,065,406

2,126,118

-

-

-

-

-

-

14,353,641

11,349,927

21,311,556

6.

Deposits and balances due from local banking institutions

2,252,893

1,700,652

2,645,218

1,650,663

1,722,415

1,352,457

622,880

711,662

3,449,910

3,904,315

1,722,415

3,997,675

7.

Deposits and balances due from banking institutions abroad

7,198,603

23,430,225

7,404,906

4,937,748

856,588

946,746

-

-

-

185,575,950

187,926,359

36,724,170

8.

Tax recoverable

-

2,306,005

-

-

35,633

-

90,291

90,291

92,517

-

336,465

-

9.

Loans and advances to customers (net)

654,659,988

613,892,181

551,160,564

74,668,415

71,188,674

67,470,096

-

-

-

928,824,144

863,268,077

704,366,078

10.

Balances due from group companies

7,624,757

10,228,308

4,834,579

28,406

20,504

-

1,312,658

-

58,396

-

-

-

11.

Investments in associates

446,875

446,875

400,253

727,492

630,147

682,051

-

-

-

1,174,367

1,077,022

400,254

12.

Investments in subsidiary companies

-

-

-

24,963

24,963

24,963

114,270,238

114,270,238

87,963,501

-

-

-

13.

Investments in joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

14.

Investment properties

12,600,607

12,600,607

10,227,387

-

-

-

-

-

-

12,600,607

12,600,607

10,666,255

15.

Property and equipment

10,937,588

9,812,222

9,815,944

2,023,957

2,107,445

3,967,622

824,217

828,090

822,035

31,032,505

29,729,053

21,705,496

16.

Prepaid lease rentals

116,403

117,027

118,899

-

-

-

-

-

-

121,683

122,313

124,215

17.

Intangible assets

3,129,802

3,439,459

4,160,335

431,274

413,519

555,525

3,039

3,545

5,065

22,328,404

21,214,824

7,366,736

18.

Deferred tax asset

21,093,450

20,130,483

19,237,528

4,595,976

4,423,855

3,384,397

109,865

109,865

44,703

27,070,553

25,757,832

22,982,095

19.

Retirement benefit asset

-

-

-

-

-

-

-

-

-

-

-

-

20.

Other assets

34,091,236

25,009,222

21,625,181

7,725,036

7,415,390

6,021,806

88,257

61,405

60,764

55,298,733

49,736,614

32,313,157

21.

TOTAL ASSETS

995,543,882

971,352,761

858,479,952

151,573,063

142,769,274

140,499,545

117,321,445

116,075,096

92,496,891

1,630,603,822

1,554,029,968

1,166,908,410

B.

LIABILITIES

20,966,128

37,227,730

7,994,240

13,951,314

-

6,995,020

-

-

-

34,917,442

37,227,730

14,989,260

22.

Balances due to Central Bank of Kenya

23.

Customer deposits

728,530,697

694,515,583

631,128,521

99,786,755

105,675,307

98,656,380

-

-

-

1,196,587,247

1,135,417,382

845,817,474

24.

Deposits and balances due to local banking institutions

12,953,768

14,203,190

9,474,922

5,780,801

12,276,816

9,905,645

-

-

-

18,479,541

24,466,261

19,211,284

25.

Deposits and balances due to foreign banking institutions

10,075,378

11,388,422

8,826,476

9,289,831

6,213,529

5,462,230

-

-

-

42,509,059

31,093,170

26,081,695

26.

Other money market deposits

-

-

-

-

-

-

-

-

-

-

-

-

27.

Borrowed funds

58,125,397

54,574,726

33,314,599

4,643,551

628,790

-

-

-

-

62,636,131

63,609,957

37,843,109

28.

Balances due to group companies

-

1,321,852

-

122,223

38,104

-

3,975,000

2,360,330

-

-

-

-

29.

Tax payable

1,418,775

-

9,094,891

92,397

-

284,351

-

-

-

4,420,671

-

9,415,579

30.

Dividends payable

3,213,463

3,213,463

4,858,749

-

-

274

-

-

-

-

-

-

31.

Deferred tax liability

-

-

-

-

-

-

-

-

-

4,492,295

4,492,295

655,000

32.

Retirement benefit liability

585,000

585,000

458,000

-

-

-

-

-

-

1,036,399

585,000

458,000

33.

Other liabilities

35,065,774

30,928,460

27,534,923

2,868,298

2,846,796

2,812,303

508,988

765,947

617,866

50,679,309

50,861,910

28,713,957

34.

TOTAL LIABILITIES

870,934,380

847,958,426

732,685,321

136,535,170

127,679,342

124,116,203

4,483,988

3,126,277

617,866

1,415,758,094

1,347,753,705

983,185,358

C.

SHAREHOLDERS' FUNDS

53,986,100

53,986,100

53,986,100

12,683,038

12,683,038

12,683,038

3,213,463

3,213,463

3,213,463

3,213,463

3,213,463

3,213,463

35.

Paid up/Assigned capital

36.

Share premium/(discount)

-

-

-

3,141,319

3,141,319

3,141,319

27,690,149

27,690,149

27,690,149

27,690,149

27,690,149

27,690,149

37.

Revaluation reserves

-

-

-

-

-

1,200,558

-

-

-

2,487,666

2,487,666

1,200,558

38.

Retained earnings/Accumulated losses

52,348,784

42,463,463

69,859,150

(4,433,806)

(4,324,159)

(5,121,889)

75,506,919

75,618,281

54,548,487

154,543,615

147,205,910

146,104,167

39.

Statutory loan loss reserve

23,318,826

26,755,145

4,435,113

4,584,996

4,374,215

4,789,033

-

-

-

24,850,534

26,707,228

7,372,172

40.

Other Reserves/Re-measurement of defined benefit asset/liability

(5,044,208)

(4,195,571)

(2,485,732)

(937,654)

(784,481)

(308,717)

-

-

-

(11,067,418)

(13,530,926)

(10,174,046)

41.

Proposed dividends

-

4,385,198

-

-

-

-

6,426,926

6,426,926

6,426,926

6,426,926

6,426,926

6,426,926

42.

Capital grants

-

-

-

-

-

-

-

-

-

-

-

-

43.

TOTAL SHAREHOLDERS' FUNDS

124,609,502

123,394,335

125,794,631

15,037,893

15,089,932

16,383,342

112,837,457

112,948,819

91,879,025

208,144,935

200,200,416

181,833,389

44.

Minority Interest

-

-

-

-

-

-

-

-

-

6,700,793

6,075,847

1,889,663

45.

TOTAL LIABILITIES AND SHAREHOLDERS' FUNDS

995,543,882

971,352,761

858,479,952

151,573,063

142,769,274

140,499,545

117,321,445

116,075,096

92,496,891

1,630,603,822

1,554,029,968

1,166,908,410

II.

STATEMENT OF COMPREHENSIVE INCOME

1.

INTEREST INCOME

15,564,523

59,625,463

14,283,620

1,708,699

7,499,952

1,702,206

-

-

-

24,694,179

84,174,056

18,799,438

1.1. Loans and advances

1.2. Government securities

6,292,972

23,482,989

5,264,090

1,386,535

5,616,106

1,496,467

-

-

-

8,780,611

32,860,929

7,658,863

1.3. Deposits and placements with banking institutions

10,839

222,611

50,364

7,182

40,017

22,174

7,324

19,383

1,788

137,762

716,455

169,340

1.4. Other Interest Income

-

-

-

8,749

35,501

8,749

-

-

-

-

-

-

1.5 Total interest income

21,868,334

83,331,063

19,598,074

3,111,165

13,191,576

3,229,596

7,324

19,383

1,788

33,612,552

117,751,440

26,627,641

2.

INTEREST EXPENSE

5,755,304

17,834,494

4,005,233

833,018

3,123,059

739,857

-

-

-

7,803,278

25,213,637

5,734,751

2.1.

Customer deposits

2.2. Deposits and placement from banking institutions

2,192,142

3,777,636

570,879

363,456

853,860

261,740

-

-

-

3,654,065

5,415,481

1,045,933

2.3. Other interest expenses

76,474

337,545

85,794

48,155

171,048

43,220

-

-

-

95,250

469,013

107,141

3.

2.4. Total interest expenses

8,023,920

21,949,675

4,661,906

1,244,629

4,147,967

1,044,817

-

-

-

11,552,593

31,098,131

6,887,825

NET INTEREST INCOME/(LOSS)

13,844,414

61,381,388

14,936,168

1,866,536

9,043,609

2,184,779

7,324

19,383

1,788

22,059,959

86,653,309

19,739,816

4.

OTHER OPERATING INCOME

2,726,701

9,687,992

2,319,803

86,140

182,740

68,572

-

-

-

2,720,692

10,639,803

2,573,801

4.1 Fees and commissions on loans and advances

4.2. Other fees and commissions

2,718,609

7,489,825

2,053,377

286,576

781,435

182,497

-

-

-

7,080,655

12,347,508

3,349,111

4.3. Foreign exchange trading income

1,919,861

8,916,989

1,184,287

259,354

964,611

120,605

11,122

13,504

2,333

2,646,032

11,078,891

1,739,501

4.4. Dividend Income

-

-

-

51,144

-

-

-

32,824,414

4,858,749

-

-

-

4.5. Other income

1,143,429

5,274,148

1,234,746

172,993

390,978

110,731

347,419

1,412,053

128,495

2,342,914

9,185,313

1,629,160

5.

4.6. Total other operating income

8,508,600

31,368,954

6,792,213

856,207

2,319,764

482,405

358,541

34,249,971

4,989,577

14,790,293

43,251,515

9,291,573

TOTAL OPERATING INCOME

22,353,014

92,750,342

21,728,381

2,722,743

11,363,373

2,667,184

365,865

34,269,354

4,991,365

36,850,252

129,904,824

29,031,389

6.

OTHER OPERATING EXPENSES

3,319,686

8,560,331

1,701,574

407,394

2,003,475

221,107

-

-

-

4,118,282

13,206,881

2,075,384

6.1. Loan loss provision

6.2. Staff costs

5,126,629

18,518,101

4,310,870

1,303,881

4,694,743

1,095,477

266,776

1,210,780

237,970

9,359,554

30,262,179

6,719,455

6.3. Directors' emoluments

145,992

433,849

143,362

7,680

35,038

6,469

11,850

78,244

17,202

236,355

536,697

238,437

6.4. Rental charges

87,385

185,795

69,035

45,063

123,551

34,682

-

-

-

199,006

464,550

197,835

6.5. Depreciation charge on property and equipment

529,009

2,169,789

537,866

138,332

589,774

166,332

4,383

15,693

3,715

1,154,647

3,990,091

955,847

6.6. Amortisation charges

379,975

1,517,741

375,466

50,273

285,536

82,337

506

2,026

506

525,301

2,624,814

513,868

6.7. Other operating expenses

3,551,461

12,453,787

2,776,811

647,433

2,783,626

581,308

193,710

840,816

71,310

7,403,051

21,488,259

4,298,485

7.

6.8. Total other operating expenses

13,140,137

43,839,393

9,914,984

2,600,056

10,515,743

2,187,712

477,225

2,147,559

330,703

22,996,196

72,573,471

14,999,311

Profit/(loss) before tax and exceptional items

9,212,877

48,910,949

11,813,397

122,687

847,630

479,472

(111,360)

32,121,795

4,660,662

13,854,056

57,331,353

14,032,078

8.

Exceptional items

-

-

-

-

-

-

-

-

-

-

-

-

9.

Profit/(loss) after exceptional items

9,212,877

48,910,949

11,813,397

122,687

847,630

479,472

(111,360)

32,121,795

4,660,662

13,854,056

57,331,353

14,032,078

10.

Current tax

(3,726,665)

(14,684,118)

(3,807,407)

(128,030)

(553,222)

73,174

-

(34,419)

(4,792)

(5,435,484)

(17,034,861)

(4,439,490)

11.

Deferred tax

962,967

509,282

264,040

106,475

425,371

69,433

-

116,872

51,710

1,334,238

541,243

263,814

12.

Profit/(loss) after tax and exceptional items

6,449,179

34,736,113

8,270,030

101,132

719,779

336,865

(111,360)

32,204,248

4,707,580

9,752,810

40,837,735

9,856,402

13.

Minority Interest

-

-

-

-

-

-

-

-

-

249,381

224,219

67,508

14.

Profit/(loss) after tax and exceptional items and Minority Interest

6,449,179

34,736,113

8,270,030

101,132

719,779

336,865

(111,360)

32,204,248

4,707,580

9,503,429

40,613,516

9,788,894

15.

Other Comprehensive income:

15.1. Gains/(Losses) from translating the financial statements of foreign operations

-

-

-

-

-

-

-

-

-

(634,007)

787,000

340,296

15.2. Fair value changes in available-for-sale financial assets

(1,212,340)

(4,281,932)

(1,667,844)

(218,819)

(1,134,300)

(454,637)

-

-

-

(5,725,056)

(4,218,406)

(1,352,546)

15.3. Re-measurement of defined benefit pension fund

-

(218,000)

-

-

-

-

-

-

-

(218,000)

-

15.4. Share of other comprehensive income of associates

-

-

-

-

-

-

-

-

-

-

-

16.

15.5. Income tax relating to components of other comprehensive income

363,702

1,349,980

500,353

65,646

340,290

136,391

-

-

-

1,717,517

1,330,922

405,764

Other comprehensive income for the year net of tax

(848,638)

(3,149,952)

(1,167,491)

(153,173)

(794,010)

(318,246)

-

-

-

(4,641,546)

(2,318,484)

(606,486)

17.

Total comprehensive income for the year

5,600,541

31,586,161

7,102,539

(52,041)

(74,231)

18,619

(111,360)

32,204,248

4,707,580

5,111,264

38,519,251

9,249,916

18.

EARNINGS PER SHARE - DILUTED & BASIC KSHS

0.48

0.64

0.61

0.03

0.11

0.10

(0.14)

10.02

5.86

12.14

12.71

12.18

19.

DIVIDEND PER SHARE - DECLARED KSHS

-

0.58

-

-

-

-

2.00

-

III.

OTHER DISCLOSURES

1.

NON-PERFORMING LOANS AND ADVANCES

138,947,180

129,110,413

98,913,323

20,826,579

18,495,986

27,716,118

176,470,712

161,204,092

130,947,239

a) Gross Non-performing loans and advances

b) Less Interest in Suspense

12,127,998

10,700,324

8,561,371

2,597,208

2,434,820

4,545,759

15,333,322

13,847,979

13,506,617

c) Total Non-Performing Loans and Advances (a-b)

126,819,182

118,410,089

90,351,952

18,229,371

16,061,166

23,170,359

161,137,390

147,356,113

117,440,622

d) Less Loan Loss Provision

65,749,112

52,055,838

41,315,519

10,696,228

10,227,482

12,260,564

85,716,325

70,613,860

55,439,476

e) Net Non-Performing Loans and Advances(c-d)

61,070,070

66,354,251

49,036,433

7,533,143

5,833,684

10,909,795

75,421,065

76,742,253

62,001,146

f) Discounted Value of Securities

56,543,010

62,146,449

44,761,576

7,032,471

5,575,691

10,733,780

73,544,910

65,844,558

59,586,869

g) Net NPLs Exposure (e-f)

4,527,060

4,207,802

4,274,857

500,672

257,993

176,015

1,876,155

10,897,695

2,414,277

2.

INSIDER LOANS AND ADVANCES

16,381,229

10,588,373

1,717,455

51

19

19

19,125,813

11,567,155

1,194,696

a)

Directors, Shareholders and Associates

b) Employees

14,717,824

14,749,609

14,605,949

5,700,537

5,725,588

5,798,601

23,335,422

23,209,465

22,456,920

c) Total Insider Loans and Advances and other facilities

31,099,053

25,337,982

16,323,404

5,700,588

5,725,607

5,798,620

42,461,235

34,776,620

23,651,616

3.

OFF-BALANCE SHEET ITEMS

180,131,434

111,462,201

112,478,087

9,067,134

8,622,735

3,888,837

241,490,117

157,031,406

130,246,242

a) Letters of credit,guarantees, acceptances

b) Forwards, swaps and options

16,378,420

4,928,705

14,005,698

5,390,978

6,121,453

6,939,528

23,520,012

12,399,606

22,703,205

c)

Other contingent liabilities

-

-

-

-

-

-

-

-

-

d) Total Contingent Liabilities

196,509,854

116,390,906

126,483,785

14,458,112

14,744,188

10,828,365

265,010,129

169,431,012

152,949,447

4.

CAPITAL STRENGTH

92,327,887

85,964,036

112,443,731

10,857,004

11,034,430

10,172,212

179,653,980

173,697,452

166,342,570

a) Core capital

b) Minimum Statutory Capital

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

c)

Excess (a-b)

91,327,887

84,964,036

111,443,731

9,857,004

10,034,430

9,172,212

178,653,980

172,697,452

165,342,570

d) Supplementary Capital

35,598,290

34,786,348

28,010,113

5,173,780

1,129,549

1,322,539

45,667,501

40,511,551

30,947,172

e) Total Capital (a+d)

127,926,177

120,750,384

140,453,844

16,030,784

12,163,979

11,494,751

225,321,481

214,209,003

197,289,742

f) Total risk weighted assets

833,863,162

792,142,822

717,209,325

96,085,038

90,363,905

81,791,952

1,321,582,701

1,249,837,735

864,249,585

g) Core Capital/Total deposits Liabilities

12.5%

12.2%

17.5%

10.5%

10.0%

9.8%

15.0%

15.3%

19.7%

h) Minimum statutory Ratio

8.0%

8.0%

8.0%

8.0%

8.0%

8.0%

8.0%

8.0%

8.0%

I)

Excess

4.5%

4.2%

9.5%

2.5%

2.0%

1.8%

7.0%

7.3%

11.7%

j) Core Capital / total risk weighted assets

11.1%

10.9%

15.7%

11.3%

12.2%

12.4%

13.6%

13.9%

19.2%

k) Minimum Statutory Ratio

10.5%

10.5%

10.5%

10.5%

10.5%

10.5%

10.5%

10.5%

10.5%

l)

Excess (j-k)

0.6%

0.4%

5.2%

0.8%

1.7%

1.9%

3.1%

3.4%

8.7%

m) Total Capital/total risk weighted assets

15.3%

15.2%

19.6%

16.7%

13.5%

14.1%

17.0%

17.1%

22.8%

n) Minimum statutory Ratio

14.5%

14.5%

14.5%

14.5%

14.5%

14.5%

14.5%

14.5%

14.5%

o) Excess (m-n)

0.8%

0.7%

5.1%

2.2%

(1.0%)

(0.4%)

2.5%

2.6%

8.3%

p) Adjusted Core Capital/Total Deposit Liabilities*

12.5%

12.2%

17.6%

10.6%

10.1%

9.9%

15.0%

15.3%

19.7%

q) Adjusted Core Capital/Total Risk Weighted Assets*

11.1%

10.9%

15.8%

11.5%

12.4%

12.6%

13.6%

13.9%

19.3%

r) Adjusted Total Capital/Total Risk Weighted Assets*

15.3%

15.3%

19.7%

16.8%

13.7%

14.3%

17.0%

17.1%

22.9%

5.

LIQUIDITY

a) Liquidity Ratio

28.1%

29.9%

33.1%

36.3%

40.5%

35.4%

43.7%

40.9%

36.9%

b) Minimum Statutory Ratio

20.0%

20.0%

20.0%

20.0%

20.0%

20.0%

20.0%

20.0%

20.0%

c) Excess (a-b)

8.1%

9.9%

13.1%

16.3%

20.5%

15.4%

23.7%

20.9%

16.9%

*The adjusted capital ratios include the expected credit loss provisions added back to capital in line with the CBK quidance note issued in April 2018 on implementation of IFRS9.

Message from the Directors:

The above financial statements are extracts from the books of the institution. The complete set of quarterly financial statements, statutory and qualitative disclosures can be accessed on the institution's website www.kcbgroup.com They mav also be accessed at the institutions For People. For Better. Head Office located at Kencom house, Moi Avenue, Nairobi, Kenya. The financial statements were approved by the Board of Directors on Wednesday 24th May, 2023 and were signed on its behalf by: Andrew W. Kairu - Group Chairman | Paul Russo - Group Chief Executive Officer

Regulated by Central Bank of Kenya

www.kcbgroup.com

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Disclaimer

KCB Group Ltd. published this content on 25 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2023 16:48:25 UTC.