KCB Group has announced a 64.9% increase in profit after tax, reaching Sh61.8 billion for the financial year 2024, up from Sh37.5 billion in 2023.
The impressive growth was fueled by strong revenue expansion across all business segments, despite prevailing economic challenges.
Key Financial Highlights
- Total revenue: Sh204.9 billion (+24.0%), driven by higher interest income and forex trading earnings.
- Balance sheet size: Sh1.96 trillion, supported by a strong deposit base and a stable loan portfolio.
- Customer deposits: Sh1.4 trillion.
- Customer loans and advances: Sh990.4 billion.
- Net interest income: +28.0%.
- Non-funded income (fees, commissions, forex): 33.0% of total revenue.
- Operating expenses: Sh92.9 billion (+11.8%), attributed to staff costs, technology investments, and inflation.
- Provisions for expected credit losses: -11.0%, aided by the appreciation of the Kenyan Shilling and successful loan recovery efforts.
- Gross non-performing loans (NPLs): Sh225.7 billion, with an NPL ratio of 19.2%.
- Return on equity (ROE): Improved from 17.8% to 24.6%.
- Total equity: Sh274.9 billion (+20.8%).
Leadership Insights
Releasing the results in Nairobi, KCB Group CEO Paul Russo reaffirmed the bank’s commitment to sustainable growth and long-term value creation.
“This strong performance underscores our strategic focus on delivering value for our customers, shareholders, and stakeholders. We are leveraging technology and optimizing customer-centered solutions to drive growth across the markets we operate in,” Russo stated.
He emphasized the bank’s drive toward innovation:
“Our priority is ensuring we have fit-for-purpose technology that provides seamless, reliable, secure, and innovative banking solutions.”
Subsidiaries’ Contribution and Strategic Outlook
KCB’s regional subsidiaries, excluding KCB Bank Kenya, contributed 34.9% of total assets and 30.3% of profit after tax, highlighting the bank’s growing footprint beyond Kenya.
Chairman Dr. Joseph Kinyua expressed optimism about KCB’s future performance, citing a projected economic recovery driven by key service sectors, agriculture, increased private sector credit growth, and improved exports.
“We are excited about the strong profits across all entities and optimistic about economic growth in the coming year. Our focus remains on preserving capital and cost containment for long-term sustainability,” Kinyua said.
Dividend Payout
The Board has proposed a final dividend of Sh1.50 per share, bringing the total dividend for 2024 to Sh3.00 per share, amounting to Sh9.6 billion, pending shareholder approval.
With strong capital buffers and continued strategic investments, KCB Group remains well-positioned for sustainable growth and long-term success in the Kenyan and regional banking industry.
