Why call for 100% NPL coverage ratio yet the factors that led to downgrading of these accounts are temporary? Most of the accounts have now started receiving regular repayments and will soon be upgraded to Normal category and NPL coverage will follow suit. Soon, NPL coverage will be >80% and NPL ratio c5%

I agree. I assume KCB delayed the announcement until the (defaulting) client agreed to repayments. Which client I wonder? A listed firm?

You are onto something. I thank you, deal and similar minds for havin an analytical eye

KCB’s foreign subsidiaries outpace Equity banks

KCB foreign subsidiaries outperformed Equity Bank’s in the six months to June helped by increased income from transactions.

The bank’s network of regional branches reported a 80 per cent increase in net profit to Sh879 million in the six months to June while that of Equity Bank and business lines dropped to Sh144 million compared to Sh348 million in the period under review.

KCB, which is Kenya’s largest bank by assets, operates in Tanzania, Rwanda, Uganda, South Sudan and Burundi while Equity has a presence in the foreign markets save for Burundi.

Both banks recorded gains in lending income from the subsidiaries, but KCB outpaced Equity in earnings from transaction incomes such as ATM charges, over-the-counter withdrawals.

@Kausha - I was wondering aloud if the defaulting firm was listed. I wonder if KCB lent significant sums to KK. Of course, I think KK is back in the black now.