KCB Group recorded a 64.9 per cent increase in profit after tax for the full year 2024, reaching Sh61.8 billion, up from Sh37.5 billion in the previous year.
The growth was attributed to strong revenue expansion across all business segments, despite economic challenges.
The Group’s total revenue surged by 24.0 per cent to Sh204.9 billion, fuelled by higher interest income and increased earnings from foreign exchange trading.
Its balance sheet closed the year at Sh1.96 trillion, supported by a solid deposit base and a stable loan portfolio.
Releasing the financial results in Nairobi, Group Chief Executive Officer Paul Russo underscored the bank’s commitment to long-term value creation.
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"The strong performance illustrates our resolve over the past 3 years to build an organisation for the future that is anchored on delivering value for our customers, shareholders and all stakeholders," Russo.
"The Group strives to be more agile by rethinking our customer-centered value propositions and leveraging Group capabilities in the markets where we operate in. Our focus is on ensuring we have fit-for-purpose technology that delivers seamless, reliable, secure, and innovative solutions for our customers."
Subsidiaries, excluding KCB Bank Kenya, contributed 34.9 per cent of the Group’s total assets and accounted for 30.3 per cent of profit after tax.
Net interest income increased by 28.0 per cent, while non-funded income, comprising fees, commissions, and forex trading, accounted for 33.0 per cent of the total revenue.
Operating expenses rose by 11.8 per cent to Sh92.9 billion due to staff costs, technology investments, and inflationary pressures.
Meanwhile, provisions for expected credit losses dropped by 11.0 per cent, aided by the appreciation of the Kenyan Shilling, successful rehabilitation of key non-performing loans (NPLs), and aggressive recovery efforts.
The Group’s NPL ratio stood at 19.2 per cent, with gross NPLs closing at Sh225.7 billion.
Customer deposits reached Sh1.4 trillion, while customer loans and advances stood at Sh990.4 billion.
Return on equity improved from 17.8 per cent to 24.6 per cent, with total equity rising by 20.8 per cent to Sh274.9 billion.
The Group also maintained strong capital buffers, with all banking subsidiaries except NBK meeting their respective regulatory capital requirements.
KCB Group Chairman Dr Joseph Kinyua expressed confidence in the bank’s future performance.
“We are excited about the strong profits witnessed across all entities. We are optimistic that there will be a pickup in economic activity this year across markets, supported by resilience of key service sectors and agriculture, expected recovery in growth of credit to the private sector, and improved exports. We are continually ring-fencing our business by preserving capital and containing costs for long-term sustainability,” he said.
The Board has proposed a final dividend payout of Sh1.50 per share, bringing the total dividend for 2024 to Sh3.00 per share, amounting to Sh9.6 billion, pending shareholder approval.
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