KCB Group HY’22 PAT, and EPS edged up 27.59% and 27.63%, respectively with both being above our expectations . PAT increase to KES 34.17Bn driven by a double boost of a 16.79% y/y increase in Total Operating income to KES 59.81Bn and a 34.40% y/y decline in Loan Loss Provisions to KES 4.32Bn.
Customer deposits grew 15.59% to KES 908.57Bn driven by term deposits while the loan book increased by 20.33% to KES 730.34Bn, taking the loan-to-deposit ratio 316bps higher to 80.38%. Loan book growth was driven by a 23.00% increase in Mobile loans such as Vooma (+34%), Fuliza (+31%), and KCB M-pesa (+2%) to KES 91.00Bn. Factoring in the completion of the TMB acquisition, we expect the lender to close FY’22 with an asset size of KES 1.50Tn.
