KCB Group PLC Reports 64.9% Profit Growth, Reaching KShs. 61.8 Billion
KCB Group PLC Reports 64.9% Profit Growth, Reaching KShs. 61.8 Billion
KCB Group PLC recorded a 64.9% increase in profit after tax for the full year 2024, reaching KShs. 61.8 billion, driven by strong revenue growth across all business segments. This marks a significant rise from KShs. 37.5 billion reported in the previous year.
The Group’s balance sheet closed the year at KShs. 1.96 trillion, supported by a solid deposit base and a stable loan portfolio, despite a challenging economic environment.
Strong Performance and Strategic Growth
Speaking during the release of the 2024 financial results, KCB Group CEO Paul Russo emphasized the Group’s commitment to long-term value creation.
KCB Group PLC Reports 64.9% Profit Growth, Reaching KShs. 61.8 Billion
“The strong performance illustrates our dedication over the past three years to building a future-ready organization that delivers value to our customers, shareholders, and stakeholders,” Russo stated.
He highlighted KCB’s focus on agility, customer-centric value propositions, and leveraging Group synergies across markets. “We are committed to enhancing our technology to provide seamless, reliable, secure, and innovative solutions for our customers,” he added.
Revenue Growth and Diversification
Total revenue grew by 24.0% to KShs. 204.9 billion, driven by higher interest income and non-funded income from foreign exchange trading.
The Group’s diversification strategy continued to yield strong results, with subsidiaries (excluding KCB Bank Kenya) contributing 34.9% of total assets and 30.3% of profit after tax.
Net interest income increased by 28.0%, while non-funded income contributed 33.0% of total revenues, supported by transaction fees, trade finance, and forex earnings.
Strong Capital Position
KCB Group maintained robust capital buffers, with all banking subsidiaries, except NBK, meeting their respective regulatory capital requirements.
• Core capital to risk-weighted assets: 16.8% (against a 10.5% regulatory minimum)
• Total capital to risk-weighted assets: 19.4% (against a 14.5% regulatory minimum)
KCB Group Chairman Dr. Joseph Kinyua expressed confidence in the bank’s continued growth, stating, “We are excited about the strong performance across all entities. We anticipate increased economic activity this year, driven by the resilience of key service sectors, agriculture, improved credit growth, and stronger exports. Our focus remains on preserving capital and controlling costs for long-term sustainability.”
KCB Group PLC Reports 64.9% Profit Growth, Reaching KShs. 61.8 Billion
Dividend Payout and Future Outlook
The Board has proposed a final dividend of KShs. 1.50 per share, pending shareholder approval.
Combined with the interim dividend of KShs. 1.50 per share paid in September 2024, the total payout for the year stands at KShs. 3.00 per share, amounting to KShs. 9.6 billion.
Looking ahead, KCB Group aims to enhance operational efficiency and expand its market share, positioning itself for sustained growth in the evolving financial landscape.
