KCB : FY 2020 Financial Publication

AUDITED FINANCIAL STATEMENTS AND OTHER DISCLOSURES FOR THE YEAR ENDED 31 DECEMBER 2020

1. STATEMENT OF FINANCIAL POSITION

1. ASSETS

1.	Cash (both Local & Foreign)
2.	Balances due from Central Bank of Kenya
3.	Kenya Government and other securities held for
dealing purposes
4.	Financial Assets at fair value through
profit and loss
5.	a) Held at armotised cost: a. Kenya Government
	securities
	b. Other securities
	b) Fair value through OCI: a. Kenya Government
	securities
	b. Other securities
6.	Deposits and balances due from local banking
	institutions
7.	Deposits and balances due from banking institu-
	tions abroad
8.	Tax recoverable
9.	Loans and advances to customers (net)
10.	Balances due from group companies
11.	Investments in associates
12.	Investments in subsidiary companies
13.	Investments in joint ventures
14.	Investment properties
15.	Property and equipment
16.	Prepaid lease rentals
17.	Intangible assets
18.	Deferred tax asset
19.	Retirement benefit asset
20.	Other assets
21.	TOTAL ASSETS
B.	LIABILITIES
22.	Balances due to Central Bank of Kenya
23.	Customer deposits
24.	Deposits and balances due to local banking
institutions
25.	Deposits and balances due to foreign banking
	institutions
26.	Other money market deposits
27.	Borrowed funds
28.	Balances due to group companies
29.	Tax payable
30.	Dividends payable
31.	Deferred tax liability
32.	Retirement benefit liability
33.	Other liabilities
34.	TOTAL LIABILITIES

KCB Bank Kenya	National Bank of Kenya	KCB GROUP PLC	KCB GROUP PLC
(Company)	(Consolidated)
31-Dec-2031-Dec-19	31-Dec-2031-Dec-19	31-Dec-2031-Dec-19	31-Dec-2031-Dec-19
Kes 000	Kes 000	Kes 000	Kes 000	Kes 000	Kes 000	Kes 000	Kes 000
Audited	Audited	Audited	Audited	Audited	Audited	Audited	Audited
7,597,722	8,412,261	1,100,330	1,333,800	-		-	15,152,993	15,604,680
25,839,259	33,809,960	3,750,586	11,346,712	-		-	29,589,845	45,156,672
2,019,227	-	-	-	-		-	2,019,227	-
-	-	-	-	-		-	-	-
69,422,464	53,102,746	34,460,222	37,116,751	-		-	103,882,686	90,182,021
-	-	-	-	-		-	10,597,858	8,409,396
71,106,673	63,639,829	15,096,249	-	-		-	86,202,922	63,711,225
-	-	-	-	-		25,356	8,081,389	2,563,734
3,097,833	10,276,990	1,357,790	1,050,939	1,146,705		1,177,914	4,455,623	11,290,453
8,662,093	4,108,445	755,496	1,606,864	-		-	39,117,240	36,356,464
247,078	458,286	304,692	237,713	24,920		27,352	425,728	551,675
492,537,561	448,768,130	55,539,275	45,871,701	-		-	595,254,297	539,747,260
5,715,418	4,818,740	-	-	212,778		6,335,793	-	-
600,000	600,000	630,353	515,910	-		-	600,000	600,000
-	-	24,963	19,963	79,661,797		79,227,397	-	-
-	-	-	-	-		-	-	-
6,035,000	5,642,223	-	-	-		-	6,035,000	5,642,223
9,977,222	10,104,529	4,374,108	4,547,631	616,428		606,651	19,967,596	20,163,379
122,019	124,516	-	-	-		-	120,015	126,522
4,443,725	4,918,474	744,447	1,041,333	7,597		9,623	5,499,457	6,337,138
13,789,704	8,684,284	3,136,380	3,103,595	-		1,221	17,647,182	12,861,416
-	-	-	-	-		-	-	-
37,132,433	16,832,307	5,566,729	4,235,835	33,330		38,354	43,161,195	39,267,955
758,345,431	674,301,720	126,841,620	112,028,747	81,703,555	87,449,661	987,810,253	898,572,213
-	-	-	-	-	-	-	-
588,627,915	528,114,597	99,229,389	87,091,263	-	-	767,224,467	686,583,179
1,776,411	7,522,635	6,460,632	5,983,472	-	-	7,237,043	9,509,090
662,973	1,192,971	6,981,903	4,003,782	-	-	12,431,235	10,861,504
-	-	-	-	-	-	-	-
34,706,661	18,463,923	-	-	-	-	37,032,388	21,813,731
-	-	-	-	3,553,491	-	-	-
-	-	-	-	-	-	-	135,791
-	8,097,915	5,681	5,819	-	-	-	-
-	-	-	-	10,152	-	-	-
177,000	-	-	-	-	-	177,000	-
21,123,927	18,302,045	2,228,471	3,239,991	52,364		4,368	21,283,837	39,927,810
647,074,887	581,694,086	114,906,076	100,324,327	3,616,007		4,368	845,385,970	768,831,105

III. OTHER DISCLOSURES	KCB Bank Kenya	National Bank of Kenya	KCB GROUP PLC	KCB GROUP PLC
(Company)	(Consolidated)
	31-Dec-20	31-Dec-19	31-Dec-20	31-Dec-19	31-Dec-20	31-Dec-19		31-Dec-20	31-Dec-19
	Kes 000	Kes 000	Kes 000	Kes 000	Kes 000	Kes 000		Kes 000	Kes 000
	Audited	Audited	Audited	Audited	Audited	Audited		Audited	Audited

1. NON-PERFORMING LOANS AND ADVANCES

	a) Gross non-performing loans and advances	66,810,159	34,786,250	26,438,040	25,175,371		96,612,758	63,396,118
		b) Less Interest in Suspense	7,203,362	4,050,790	4,290,607	4,530,646		11,849,662	8,984,349
		c) Total Non-Performing Loans and	59,606,797	30,735,460	22,147,433	20,644,725		84,763,096	54,411,769
			Advances (a-b)
		d) Less Loan Loss Provision	33,533,503	17,052,633	11,322,528	10,274,767		45,904,828	28,716,020
		e) Net Non-Performing Loans and	26,073,294	13,682,827	10,824,905	10,369,958		38,858,268	25,695,749
			Advances(c-d)
		f) Discounted Value of Securities	23,561,199	11,604,247	10,330,933	10,066,760		43,674,611	26,065,820
		g) Net NPLs Exposure (e-f)	2,512,095	2,078,580	493,972	303,198		(4,816,343)	(370,071)
2.	INSIDER LOANS AND ADVANCES
		a) Directors, Shareholders and Associates	3,461,438	1,385,533	-	37		1,818,015	1,410,254
		b) Employees	14,544,769	12,614,514	5,872,627	5,492,318		21,694,482	19,392,521
		c) Total Insider Loans and Advances and
			other facilities	18,006,207	14,000,047	5,872,627	5,492,355		23,512,497	20,802,775
3.	OFF-BALANCE SHEET ITEMS
		a) Letters of credit, guarantees and acceptances	60,389,210	76,191,558	4,996,228	6,396,276		74,319,742	91,779,400
		b) Forwards, swaps and options	16,307,815	14,472,705	11,351,200	506,750		28,784,319	15,444,637
		c)	Other contingent liabilities	-	-	-	-		-	-
		d)	Total Contingent Liabilities	76,697,025	90,664,263	16,347,428	6,903,026		103,104,061	107,224,037
4.		CAPITAL STRENGTH
		a) Core capital	102,218,465	90,200,466	6,578,405	6,579,626		143,723,638	124,221,697
		b) Minimum Statutory Capital	1,000,000	1,000,000	1,000,000	1,000,000		7,859,059	6,470,636
		c) Excess (a-b)	101,218,465	89,200,466	5,578,405	5,579,626		135,864,579	117,751,061
		d) Supplementary Capital	24,455,875	10,866,500	1,256,934	1,154,704		26,610,770	13,515,952
		e) Total Capital (a+d)	126,674,340	101,066,966	7,835,339	7,734,330		170,334,408	137,737,649
		f) Total risk weighted assets	654,392,522	577,236,270	76,036,622	67,262,493		788,786,860	723,921,493
		g) Core Capital/Total Deposits Liabilities	17.3%	17.1%	6.2%	7.2%		18.7%	18.1%
		h) Minimum statutory Ratio	8.0%	8.0%	8.0%	8.0%		8.0%	8.0%
		i) Excess (g-h)	9.3%	9.1%	(1.8%)	(0.8%)		10.7%	10.1%
		j) Core Capital/Total Risk Weighted Assets	15.6%	15.6%	8.7%	9.8%		18.2%	17.2%
		k) Minimum Statutory Ratio	10.5%	10.5%	10.5%	10.5%		10.5%	10.5%
		l) Excess (j-k)	5.1%	5.1%	(1.8%)	(0.7%)		7.7%	6.7%
		m) Total Capital/Total Risk Weighted Assets	19.4%	17.5%	10.3%	11.5%		21.6%	19.0%
		n) Minimum Statutory Ratio	14.5%	14.5%	14.5%	14.5%		14.5%	14.5%
		o) Excess (m-n)	4.9%	3.0%	(4.2%)	(3.0%)		7.1%	4.5%
		p) Adjusted Core Capital/Total Deposit Liabilities*	17.6%	17.7%	6.2%	7.3%		18.9%	18.6%
		q) Adjusted Core Capital/Total Risk Weighted	15.8%	16.2%	8.7%	10.0%		18.4%	17.6%
			Assets*
		r) Adjusted Total Capital/Total Risk Weighted	19.5%	18.1%	10.3%	11.7%		21.8%	19.5%
			Assets*
5.		LIQUIDITY
		a) Liquidity Ratio	31.2%	30.8%	44.4%	46.1%		36.1%	37.1%
		b) Minimum Statutory Ratio	20.0%	20.0%	20.0%	20.0%		20.0%	20.0%
		c) Excess (a-b)	11.2%	10.8%	24.4%	26.1%		16.1%	17.1%

C.	SHAREHOLDERS' FUNDS
35.	Paid up/Assigned capital
36.	Share premium/(discount)
37.	Revaluation reserves
38.	Retained earnings/Accumulated losses
39.	Statutory loan loss reserve
40.	Other Reserves/Re-measurement of defined
benefit asset/liability
41.	Proposed dividends
42.	Capital grants
43.	TOTAL SHAREHOLDERS' FUNDS
44.	Minority Interest
45.	TOTAL LIABILITIES AND SHAREHOLDERS' FUNDS
II.	STATEMENT OF COMPREHENSIVE INCOME

1. INTEREST INCOME
2. 1. Loans and advances
   2. Government securities
   3. Deposits and placements with banking institutions
   4. Other Interest Income
   5. Total interest income
3. INTEREST EXPENSE
4. 1. Customer deposits
   2. Deposits and placement from banking institutions
   3. Other interest expenses
   4. Total interest expenses
5. NET INTEREST INCOME/(LOSS)
6. OTHER OPERATING INCOME
7. 1. Fees and commissions on loans and advances
   2. Other fees and commissions
   3. Foreign exchange trading income
   4. Dividend income
   5. Other income
   6. Total other operating income
8. TOTAL OPERATING INCOME
9. OTHER OPERATING EXPENSES
10. 1. Loan loss provision
    2. Staff costs
    3. Directors' emoluments
    4. Rental charges
    5. Depreciation charge on property and equipment
    6. Amortisation charges
    7. Other operating expenses
    8. Total other operating expenses
11. Profit/(loss) before tax and exceptional items
12. Exceptional items
13. Profit/(loss) after exceptional items
14. Current tax
15. Deferred tax
16. Profit/(loss) after tax and exceptional items
17. Minority Interest
18. Profit/(loss) after tax and exceptional items and Minority Interest
19. Other Comprehensive income:
20. 1. Gains/(Losses) from translating the financial statements of foreign operations
    2. Fair value changes in available-for-sale financial assets
    3. Re-measurementof defined benefit pension fund
    4. Share of other comprehensive income of associates
    5. Income tax relating to components of other comprehensive income
21. Other comprehensive income for the year net of tax
22. Total comprehensive income for the year
23. EARNINGS PER SHARE- DILUTED & BASIC Kes
24. DIVIDEND PER SHARE - DECLARED Kes

53,986,100	53,986,100	12,368,906	12,368,906	3,213,463			3,213,463	3,213,463	3,213,463
-	-	-	-	27,690,149			27,690,149	27,690,149	27,690,149
(8,658)	(858,082)	1,225,905	1,255,687	-			(51,387)	951,129	(1,231,453)
48,232,365	36,214,366	(5,506,873)	(5,455,648)	43,970,473			48,559,428	112,819,978	93,318,085
-	3,265,250	3,794,213	3,535,475	-		-	2,154,895	5,914,702
(116,900)	-	53,393	-	-		-	(7,618,794)	(7,197,478)
9,177,637	-	-	-	3,213,463		8,033,640	3,213,463	8,033,640
-	-	-	-	-		-	-	-
111,270,544	92,607,634	11,935,544	11,704,420	78,087,548	87,445,293	142,424,283	129,741,108
-	-	-	-	-	-	-	-
758,345,431	674,301,720	126,841,620	112,028,747	81,703,555	87,449,661	987,810,253	898,572,213
52,176,373	50,614,710	4,641,097	4,606,559	-	-	64,770,327	59,011,291
16,220,619	12,010,200	5,002,783	4,386,171	-	-	23,177,656	14,066,479
510,169	1,124,242	86,617	35,648	31,329	-	797,469	1,272,851
-	-	-	-	-	-	-	-
68,907,161	63,749,152	9,730,497	9,028,378	31,329	-	88,745,452	74,350,621
14,269,287	13,434,169	2,463,293	2,131,853	-	-	18,855,318	16,265,919
1,167,011	1,456,515	150,287	460,267	-	-	1,952,551	1,953,699
-	-	98,475	147,679	-	-	-	-
15,436,298	14,890,684	2,712,055	2,739,799	-	-	20,807,869	18,219,618
53,470,863	48,858,468	7,018,442	6,288,579	31,329	-	67,937,583	56,131,003
7,881,136	8,804,676	97,005	147,545	-	-	7,504,666	9,179,404
6,343,034	8,017,461	894,858	1,185,731	-	-	10,274,334	10,670,461
3,416,282	3,137,498	486,807	551,980	37,601	(3,942)	5,389,620	4,497,062
-	-	118,065	33,800	170,000	16,551,183	-	-
4,731,262	3,579,632	279,087	136,635	506,956	414,586	5,281,981	3,824,612
22,371,714	23,539,267	1,875,822	2,055,691	714,557	16,961,827	28,450,601	28,171,539
75,842,577	72,397,735	8,894,264	8,344,270	745,886	16,961,827	96,388,184	84,302,542
23,398,651	8,719,671	1,387,426	1,984,542	-	-	27,508,441	8,888,942
13,485,558	15,543,206	4,077,889	4,026,922	658,846	277,395	20,451,028	19,358,979
248,102	424,332	20,436	41,449	50,354	86,716	296,200	456,400
208,882	132,753	173,612	127,190	-	-	389,603	98,083
2,201,665	1,944,821	669,051	704,351	12,184	8,610	3,609,291	2,761,425
1,790,693	1,432,055	398,030	408,226	2,026	506	2,309,813	1,625,137
10,922,584	11,016,949	1,855,227	1,872,835	1,376,565	560,077	16,104,928	14,216,218
52,256,135	39,213,787	8,581,671	9,165,515	2,099,975	933,304	70,669,304	47,405,184
23,586,442	33,183,948	312,593	(821,245)	(1,354,089)				16,028,523	25,718,880	36,897,358
-	-	-	(137,713)	-			-	-	-
23,586,442	33,183,948	312,593	(958,958)	(1,354,089)			16,028,523	25,718,880	36,897,358
(10,063,654)	(11,589,773)	(185,444)	(235,339)	(7,499)			(41,286)	(10,903,436)	(11,708,148)
4,824,069	1,111,726	50,582	857,307	(11,372)			(100,948)	4,788,198	(24,042)
18,346,857	22,705,901	177,731	(336,990)	(1,372,960)		15,886,289	19,603,642	25,165,168
-	-	-		-		-	-	-
18,346,857	22,705,901	177,731	(336,990)	(1,372,960)		15,886,289	19,603,642	25,165,168
-	-	-	-	-		-	(955,000)	(337,000)
618,503	(3,612,287)	71,191	194,861	-		(12,653)	3,117,974	(3,746,701)
(167,000)	(719,000)	-	(8,881)	-	-	(167,000)	(719,000)
-	-	-	-	-	-	-	-
(135,451)	869,353	(17,798)	(55,794)	-	3,796	(885,292)	909,550
316,052	(3,461,934)	53,393	130,186	-	(8,857)	1,110,682	(3,893,151)
18,662,909	19,243,967	231,124	(206,804)	(1,372,960)	15,877,432	20,714,324	21,272,017
0.34	0.40	-	-	(0.43)	5.12	6.10	8.11
0.17	0.30	-	-	1.00	3.50	1.00	3.50

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

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Proposed Dividend

The Directors of KCB Group Plc. (the "Group") have recommended a first and final dividend of Kes. 1.00 on the issued and paid up share capital of the company subject to shareholders approval.

The final dividend will be payable to the members of the company on the share register at the close of business on 26 April 2021. If approved, the full dividend per share for the year ended 31 December 2020 will be Kes. 1.00 for each ordinary share.

Message from the Directors

The above Statement of Financial Position and Statement of Comprehensive Income are extracts from the Group's, Bank's and Company's financial statements which have been audited by PricewaterhouseCoopers LLP and received an unqualified opinion. The complete set of audited financial statements, statutory and qualitative disclosures can be accessed on the institution's website www.kcbgroup.com. They may also be accessed from the institutions Head Office located at Kencom House, Moi Avenue, Nairobi.

The financial statements were approved by the Board of Directors on 17 March 2021 and were signed on its behalf by:

Andrew W. Kairu - Group Chairman | Joshua N Oigara - Group Chief Executive Officer and Managing Director | Anne Eriksson - Director | Bonnie Okumu - Group Company Secretary

Regulated by Central Bank of Kenya.

www.kcbgroup.com