KCB Group Plc has announced a significant profit after tax growth of 49 percent to KShs. 45.8 billion for the first nine months of 2024, compared to KShs. 30.7 billion in the same period last year. The growth is attributed to a strong rebound by KCB Kenya and continued momentum in international operations, showcasing the benefits of regional diversification.
The Group’s total revenues rose by 22 percent to KShs. 142.9 billion, driven by both funded and non-funded income streams across its subsidiaries. Notably, international subsidiaries (excluding KCB Bank Kenya) contributed 36.6 percent of the Group’s profit after tax and accounted for 34 percent of total assets, reflecting the strategic value of expanding outside Kenya.
Net interest income increased by 24 percent, supported by improved yields and increased lending, particularly to retail and other key market segments. Non-funded income (NFI) also saw growth, boosted by foreign exchange income, transaction fees, and revenue contributions from Trust Merchant Bank (TMB), a subsidiary in the Democratic Republic of Congo.
On the balance sheet, KCB Group’s total assets grew to KShs. 2 trillion, underpinned by stable customer deposits, which reached KShs. 1.5 trillion. Net loans and advances rose to KShs. 1.1 trillion, driven by growth in the retail lending segment.
The Group’s Non-Performing Loans (NPL) stood at KShs. 215.3 billion, reflecting an NPL ratio of 18.5 percent, attributed to challenging economic conditions across its markets. To mitigate this, KCB increased provisions for bad loans by 12.2 percent year-on-year and emphasized improving asset quality through long-term strategies.
Shareholders saw significant value gains, with return on equity improving to 25.6 percent, up from 19.6 percent last year. Shareholders’ funds grew by 14 percent to KShs. 249 billion. Additionally, the Group maintained robust capital buffers, with core capital to total risk-weighted assets at 16.5 percent, well above the regulatory minimum of 10.5 percent.
Paul Russo, KCB Group CEO, highlighted the challenges of the operating environment but praised the Group’s ability to adapt. “We have continued to walk the journey with our customers while ensuring our key fundamentals remain strong. We are optimistic about a strong year-end, riding on improving market conditions, tailored customer solutions, and the strength of our people,” said Russo.
He added, “Our deep understanding of local markets and cultures enables us to provide customized financial solutions. We are committed to regional trade investments and making a positive social impact in the communities we serve.”
KCB Group has been active in forging strategic partnerships and initiatives to enhance its market presence and sustainability commitments:
SME and Green Financing: In October, KCB partnered with the European Investment Bank (EIB Global) to provide €230 million (KShs. 32 billion) in funding for SMEs, women-led businesses, and climate-friendly projects. A portion of this funding will specifically support microenterprises led by women.
Dutch Collaboration: KCB and Netherlands-based Invest International launched a Kenyan hub to facilitate financing for Dutch entrepreneurs and businesses seeking opportunities in Africa. This hub aims to support trade and investments across the continent.
Sustainability Initiatives: KCB secured a USD 540,000 (KShs. 69 million) grant from the Green Climate Fund to support climate-resilient projects for MSMEs. The Group also launched its 2023 Sustainability and ESG Report, reaffirming its commitment to green financing and social impact initiatives.
NBK Sale: The Group is advancing the sale of its subsidiary, National Bank of Kenya (NBK), to Nigeria’s Access Bank. Regulatory approvals and customary conditions are currently underway to finalize the deal.
Payment Innovations: KCB partnered with Airtel Money Kenya to enable seamless payments through the “Lipa Na KCB” platform, enhancing financial inclusion and interoperability in the payments ecosystem.
KCB’s consistent performance has earned it notable accolades, including being listed among Kenya’s top three most valuable brands by UK-based Brand Finance. The Group also received awards for customer excellence and its women-focused banking initiatives.
KCB Group Chairman Dr. Joseph Kinyua expressed confidence in the Group’s resilience and growth prospects. “Our business is well-positioned to deliver stronger shareholder value, driven by robust governance, liquidity, and sustainable business practices,” he stated.