KCB Group released their FY’22 earnings results posting a 19.78% & 19.13% climb in EPS & PAT respectively to KES 12.71/share and KES 40.61Bn respectively driven by a 11.53% increase in net interest income and a 39.79% growth in non-interest income. Trailing ROaE & ROaA improved to 25.54% & 3.53% respectively in FY’22. NIMs remained adequate at 7.46% while the profit margin edged down 2bps y/y to 31.44%. In line with our expectation, the board of directors recommended a final dividend of KES 1.00 taking the total dividend paid out in FY’22 to KES 2.00 representing a 33.33% decline from KES 3.00 paid out in FY’21.
Loan book grew 27.80% y/y to KES 863.27Bn slower than the 35.63% y/y growth in the customer deposits to KES 1.14Tn leading to a 466bps decline in the loan deposit ratio to 76.03% from 80.69% recorded in FY’21. We observed a 23.00% growth in value of mobile loans disbursed driven by Fuliza and KCB Mobi loan to close FY’22 at 193.10Bn. It was also noted that the average ticket size for Fuliza & KCB Mobi Loan edged up in FY’22 by 29.00% & 36.00% respectively while that of KCB MPESA declined by 5.00%. There was a 30.00% uptick in value of transactions conducted through digital channels driven by mobile and internet banking which supported growth of the loan book. The Corporate:Retail customer deposits mix stood at 48:52 with 71.00% of the deposits denominated in local currency and 29.00% in Foreign Currency. The Deposits growth was largely driven by growth of existing businesses and recent acquisition of Trust Merchant Bank of DRC. Allocation to government securities grew 265bps y/y to 278.02Bn in FY’22 driven by hunt for higher yields.
