KCB Group Plc has reported an impressive 49 per cent increase in its profit after tax, reaching Sh45.8 billion for the first nine months of 2024, up from Sh30.7 billion in the same period of 2023.

This growth underscores the bank’s strong position within East Africa’s financial landscape, propelled by a mix of robust revenue streams and an expanding international footprint.

The group’s total revenue surged by 22 per cent to Sh142.9 billion, driven by growth in both funded and non-funded income.

A significant portion of this revenue was bolstered by subsidiaries outside Kenya, which contributed 36.6 per cent of the group’s profit after tax and 34 per cent of its total assets. Among these subsidiaries, Trust Merchant Bank (TMB) in the Democratic Republic of Congo played a key role.

KCB’s balance sheet showed impressive growth, with total assets reaching Sh2.0 trillion.

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Customer deposits grew to Sh1.5 trillion, and net loans and advances rose to Sh1.1 trillion, largely thanks to strong performance in the retail sector.

Despite the challenging market conditions, KCB’s CEO, Paul Russo, expressed confidence in the bank’s ability to weather the storm.

“Despite tough market conditions, we’ve maintained our resilience by providing tailored solutions to our customers across the region,” he said. He also highlighted the importance of regional trade and community investments to the bank's continued success.

Strategic initiatives further fuelled the bank’s growth, with notable partnerships including a €230 million agreement with the European Investment Bank (EIB Global).

This partnership aims to support SMEs, women-led businesses, and youth enterprises. Additionally, KCB has entered into a collaboration with Invest International to facilitate financing for Dutch entrepreneurs operating in Africa.

The bank’s commitment to sustainability is also evident, with a USD 540,000 Green Climate Fund earmarked for MSME climate projects.

In its restructuring efforts, KCB secured approval from the Common Market for Eastern and Southern Africa (COMESA) for the sale of National Bank of Kenya to Nigeria’s Access Bank.

From an operational standpoint, the group maintained a strong capital position, with core capital at 16.5 per cent of total risk-weighted assets, exceeding regulatory requirements.

Shareholders’ equity increased by 14 per cent to Sh249 billion, resulting in a return on equity of 25.6 per cent.

However, the bank faced some challenges in asset quality, reflected in a non-performing loans (NPL) ratio of 18.5 per cent.

Provisions for NPLs increased by 12.2 per cent, demonstrating KCB’s proactive approach to managing its assets in a tough economic climate.

KCB’s market position was further solidified by accolades, including being ranked among Kenya's top three most valuable brands by Brand Finance.

The group also received the Best Banking Group Kenya award at the Finance Derivatives Awards and was recognised for Best in Customer Excellence (Tier 1).

Looking ahead, KCB Group remains optimistic about the remainder of the year.

“We are optimistic of a strong end of the year, riding on improving market conditions, solutioning for customers and tapping the great strength of our people,” said Russo.

Group Chairman, Dr Joseph Kinyua, reinforced the bank’s commitment to good governance and sustainable business practices, ensuring it continues to deliver value to shareholders.