KCB Group PLC has reported a significant 64.9% growth in its profit after tax, hitting KShs. 61.8 billion for the full year 2024, compared to KShs. 37.5 billion in the previous year.
The impressive growth was fueled by strong revenue expansion across all business segments, as the bank continues to solidify its position as a financial powerhouse in the region.
The Group’s total assets closed at KShs. 1.96 trillion, backed by a strong deposit base and a stable loan portfolio despite a challenging macroeconomic environment.
Total revenues surged by 24.0% to KShs. 204.9 billion, primarily driven by higher interest income and non-funded income, particularly from foreign exchange trading, fees, and commissions.
According to KCB Group CEO Paul Russo, the bank’s outstanding performance reflects a three-year transformation strategy that focuses on customer-centric solutions, innovation, and leveraging its regional footprint.
“The strong performance illustrates our resolve to build an organization for the future, anchored on delivering value for customers, shareholders, and stakeholders. We are committed to ensuring fit-for-purpose technology that provides seamless, reliable, secure, and innovative solutions,” said Mr. Russo while releasing the financial results in Nairobi.
Financial Highlights
• Subsidiaries’ Contribution: The Group’s subsidiaries (excluding KCB Bank Kenya) accounted for 34.9% of total assets and 30.3% of post-tax profit.
• Revenue Growth: Total income rose by 24.0% to KShs. 204.9 billion, with net interest income increasing by 28.0%.
• Non-Funded Income: Accounted for 33.0% of total revenues, with significant contributions from fees, commissions, trade finance, and forex transactions.
• Operating Costs: Increased by 11.8% to KShs. 92.9 billion, attributed to staff costs, technological investments, and inflationary pressures.
• Asset Quality: Provisions for expected credit losses declined by 11.0%, boosted by a stronger Kenya Shilling and aggressive debt recovery strategies.
• NPL Ratio: The stock of gross non-performing loans (NPLs) stood at KShs. 225.7 billion, with the NPL ratio at 19.2%, reflecting tough economic conditions.
• Customer Deposits: Ended the year at KShs. 1.4 trillion, with loans and advances standing at KShs. 990.4 billion.
• Return on Equity (ROE): Improved to 24.6% from 17.8% in 2023, signaling enhanced shareholder value.
• Capital Strength: The Group maintained strong capital buffers, with a core capital-to-risk-weighted assets ratio of 16.8% against a statutory minimum of 10.5%.
Dividend Payout & Shareholder Value
KCB Group’s Board has proposed a final dividend payout of KShs. 1.50 per share, bringing the total dividend for 2024 to KShs. 3.00 per share. This translates to a total payout of KShs. 9.6 billion, reinforcing the bank’s commitment to rewarding shareholders.
KCB Group Chairman Dr. Joseph Kinyua expressed optimism about economic recovery, citing growth in key sectors such as agriculture, private sector credit expansion, and improved exports.
“We are optimistic that 2025 will see increased economic activity across markets. Our priority remains ring-fencing our business by preserving capital and containing costs for long-term sustainability,” Dr. Kinyua stated.
He also emphasized KCB’s commitment to Sustainability and ESG (Environmental, Social, and Governance) priorities, integrating climate action, social impact, and risk management into the bank’s strategic vision.
