KCB Group to Pay KShs. 13B in Dividends as Net Profit Rises 8%
KCB Group to Pay KShs. 13B in Dividends as Net Profit Rises 8%
KCB Group PLC posted strong financial results for the first half of 2025, driven by growth in earning assets despite a challenging operating environment. The performance reflects the Group’s strategy to deepen its regional footprint and deliver value to shareholders, customers, and stakeholders.
Record Payout to Shareholders
The Board of Directors has proposed an interim dividend of KShs. 2.00 per share and a special dividend of KShs. 2.00 per share following the sale of the National Bank of Kenya (NBK). This brings the total payout to KShs. 13 billion, the largest interim payment and the first special dividend in the Bank’s history.
Profit Growth and Subsidiary Performance
Profit after tax rose 8% to KShs. 32.3 billion, up from KShs. 29.9 billion, as all business units posted higher earnings. Subsidiaries outside Kenya contributed 33.4% of the Group’s profit before tax and 31.4% of total assets.
Non-banking entities, KCB Investment Bank, KCB Asset Management, and KCB Bancassurance, raised their PBT contribution to 2.1%, up from 1.8% last year.
KCB Group to Pay KShs. 13B in Dividends as Net Profit Rises 8%
Asset Base and Deposits
Total assets stood at KShs. 1.97 trillion, stable despite the NBK sale in Q2. The loan portfolio reached KShs. 1.18 trillion, up 2.8% (12% excluding NBK). Customer deposits remained strong at KShs. 1.48 trillion, supported by mobilization across subsidiaries.
Revenue and Digital Growth
Total revenue grew 4.3%, driven by higher net interest income of KShs. 69.1 billion, up from KShs. 61.3 billion.
Digital channels processed 99% of transactions by number, sustaining non-funded income at KShs. 29.5 billion, despite lower foreign exchange earnings.
On August 11, KCB launched a unified mobile app with AI-powered onboarding, allowing instant account opening and access to services.
Costs and Asset Quality
Operating costs rose 2.4% to KShs. 45.4 billion due to variable expenses and growth investments. The cost-to-income ratio stayed at 46%.
Non-performing loans improved slightly to 18.7%, with provisions for expected credit losses increasing to reflect market risks.
Strong Capital Position
Capital and liquidity buffers remained well above regulatory requirements. Core capital to risk-weighted assets stood at 17% (minimum 10.5%), while total capital ratio was 19.7% (minimum 14.5%). The liquidity ratio was 47.2%.
Shareholder Returns
Return on Equity (ROAE) was 22.2%, and Return on Assets (ROA) stood at 3.3%. Shareholders’ equity grew by 27.3% to KShs. 306.8 billion.
Outlook
KCB Chairman Dr. Joseph Kinyua said the strong performance and business trajectory have enabled the Bank to propose a historic dividend. The Group will continue focusing on people, planet, and profit while navigating regional uncertainties.
