Kenya: Banks boast impressive full year growth, buoyed by loan demand and rate hikes

By Herald Aloo
Posted on Thursday, 8 September 2022 11:14

Kenya Central Bank Governor Patrick Njoroge displays the newly designed Kenyan shilling bank notes during a news conference at the Central Bank in Nairobi, Kenya, June 3, 2019. REUTERS/Baz Ratner

Nearly all of Kenya’s commercial banks recorded an increase in net profit in their half year results ending June 2022 compared to last year, defying a difficult economic environment that has been marred by prolonged election jitters and the pandemic.

Tier-one banks such as Equity Group witnessed a 36% net profit growth to KSh24.4bn ($202m), meaning the lender earned roughly KSh135.6m every day, including weekends, across the six months to June 2022.

Others like Kenya Commercial Bank (KCB), Co-operative bank, Absa bank Kenya, and NCBA Group also had their earnings surge significantly by 28.4%, 45%,  13%  and 11%, respectively, in their half year trading. Most banks attribute revenue surge to, among other things,  increased lending and growth in interest income.