KCB Group regional subsidiaries (excluding KCB Kenya) share of profit for 2024 stood at 30.3 per cent as regional units posted double digit profit growth apart from Rwanda and Uganda.

However, the growth in net profit in the regional subsidiaries of KCB Group witnessed a sharp decline from the 35.1 per cent posted in 2023 signaling a strong growth in KCB Kenya.

According to audited financial results for the year ended December 31, 2024, KCB Group posted a 65 per cent rise in net profit to Sh61.8 billion from Sh37.5 billion recorded in 2023.

The strong show was backed by growth in regional investment revenue and an increase in income earned from customer loans, forex, bank transaction and government securities.

“The strong performance illustrates our resolve over the past three years to build an organization for the future that is anchored on delivering value for our customers, shareholders and all stakeholders,” indicated KCB Group CEO Paul Russo.

Trust Merchant Bank (TMB), KCB Group’s subsidiary in the DRC, posted a 28 per cent growth in profit after tax in 2024, followed by Burundi at 23 per cent, and Tanzania at 20 per cent.

During the fiscal year under review, the Group’s profit after tax from its businesses in Rwanda and Uganda experienced a three per cent and one per cent drop respectively.

In general, the profit after tax from the said subsidiaries spiked by 42 per cent to Sh19.6 billion even as KCB Kenya posted the highest net profit growth at 77 per cent during 2024.

In the period under review, KCB Investment Bank profit after tax grew by 105 per cent to Sh203 million, while KCB Asset Management’s net profit grew 70 per cent to Sh73 million.  

KCB Group is the biggest lender regionally boasting of Sh2 trillion in assets but had posted declining profits for the past four consecutive quarters forcing it not to declare dividends.

The lender credited its Sh61.8 billion net profit to a significant increase in its revenues generated from its regional subsidiaries and enhanced proficiencies across all businesses.

“We are optimistic that there will be a pick-up 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,” stated KCB Group Chairman Joseph Kinyua.

Kinyua added: “We are continually ring-fencing our business by preserving capital and containing costs for long-term sustainability.”

KCB Group operates businesses in Kenya, Tanzania, Uganda, Rwanda, Burundi, South Sudan, the Democratic Republic of Congo (DRC) and also has a representative office in Ethiopia.

The share of assets by the financial institution’s subsidiaries (outside of KCB Kenya) witnessed a substantial increase from 34.6 per cent in 2023 to 34.9 per cent in FY 2024.

However, the regional units’ contribution to net loans declined slightly majorly owing to the appreciation of the Kenya shilling and a solid loan book experienced by KCB Kenya in 2024.