KCB Group Plc has reported an 86 per cent increase in profit after tax for the first half of 2024, reaching Sh29.9 billion, up from Sh16.1 billion the previous year.

This growth is attributed to robust revenue generation across both funded and non-funded income lines. The Group's total assets grew by 6 per cent to Sh1.98 trillion, solidifying its position as East Africa’s largest financial institution by asset size.

The Board has recommended an interim dividend of Sh1.50 per share, totalling Sh4.8 billion—the largest in the Group's history. CEO Paul Russo credited the success to customer support and staff commitment, despite economic challenges.

“. “We delivered a commendable first half of the year, despite strong headwinds in the operating environment, especially in Kenya, thanks to the goodwill and confidence from our customers and commitment by our staff. We were intentional in working with our customers and stakeholders to support them in navigating the difficult environment,” Russo stated.

KCB's subsidiaries contributed 37.8 per cent to pretax profits and 34.4 per cent to total assets, underscoring the benefits of diversification.

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Net loans and advances grew by 7 per cent to Sh1.03 trillion, while net interest income rose by 35 per cent, boosted by higher lending and yields. Non-funded income saw a 21 per cent increase, driven by digital banking and foreign exchange trading.

However, the non-performing loan (NPL) ratio reached 18.5 per cent, with Sh212 billion in NPLs. Provisions increased by 20 per cent in response.

Operating costs grew by 9.6 per cent due to inflation and staff expenses, though the cost-to-income ratio improved to 46.8 per cent from 55.3 per cent.

KCB Group Chairman Dr. Joseph Kinyua praised the Group's resilience, stating, “KCB Group demonstrated remarkable strength and adaptability amid global and local challenges, by delivering good asset growth and improved capital adequacy ratios.”

He also announces the the Board’s decision to resume dividend payouts.

"This performance has enabled the Board to recommend an interim dividend of Sh1.50 per share,” he noted.

KCB remains committed to sustainability, having launched its 2023 Sustainability and ESG Report. The Group is also expanding, with plans to acquire 100 per cent of National Bank of Kenya once regulatory approvals are secured.

As East Africa’s top banking institution, KCB continues to earn accolades, with CEO Paul Russo recently named African Business Leader of the Year 2024.

The Group is poised for continued growth as it enters the second half of the year.