KCB Group has delivered an 8% rise in half-year profits, shrugging off a tough regional climate to hand shareholders a record interim and special dividend totalling Sh13 billion – the largest in its history.
The lender’s net profit hit Sh32.3bn for the six months to June, up from Sh29.9bn a year earlier, fuelled by higher interest income and steady customer deposits despite selling its subsidiary, National Bank of Kenya, in May.
The disposal freed up capital for what the board has dubbed a “thank you” to investors: an ordinary Sh2 per share payout, plus a one-off Sh2 linked to the NBK sale.
Chief executive Paul Russo insisted the group’s focus on “customers first” was paying off, even as inflation, high interest rates and political uncertainty weighed on key markets.
Subsidiaries outside Kenya now contribute a third of group earnings, with investment banking, asset management and insurance also pulling their weight.
Revenue climbed 4.3% to Sh98.6bn, powered by a rise in lending yields, while 99% of transactions now take place on digital channels.
KCB’s latest tech gambit is a unified mobile app launched last week, promising instant account opening, AI-driven services and a suite of “mini-apps” ranging from payments to investments.
Costs crept up just 2.4%, keeping the cost-to-income ratio steady at 46%. Non-performing loans eased slightly to 18.7% of the book, but the figure remains high by industry standards. Capital buffers are well above regulatory floors, with a liquidity ratio of 47.2%.
Beyond the balance sheet, the bank has been flexing its brand muscle – from sponsoring the Safari Rally and athletics trials to issuing Sh26.9bn in green loans. It also added six new branches across Kenya, Tanzania and Rwanda.
The strong showing brought a clutch of awards, including African Bank of the Year, and even a U.S. Congressional commendation for Russo.
“We’re building for the long term,” said chairman Joseph Kinyua, hinting at “ambitious growth goals” despite what he called “a regional environment prone to growing uncertainties”.
For now, KCB’s shareholders have 13 billion reasons to be cheerful.
