KCB Group Plc has reported a 20.8% increase in its first-half profit before tax, reaching KSh49.3 billion, or about $382 million. The growth was driven by higher lending activity, a significant rise in customer deposits, and stronger non-funded income. The bank’s total assets expanded by 16.8% to KSh2.3 trillion, which is equivalent to roughly $17.8 billion.
“Our strong half-year performance reflects the resilience of KCB Group’s diversified business model, the strength of our regional footprint, and the confidence our customers continue to place in us,” said KCB Group CEO Paul Russo.
Customer deposits rose by 15.1% to KSh1.7 trillion, or approximately $13.2 billion, providing a solid foundation for the lender’s expansion. Gross loans increased by 14.2% to KSh1.3 trillion, or about $10.1 billion. This growth in the loan book was supported by credit extended to retail customers, small and medium-sized businesses, and corporate clients across the region.
To support this reach, KCB operates in Kenya, Tanzania, South Sudan, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo. The group maintains a physical network of 460 branches, 1,247 ATMs, and more than 1.4 million merchants and agents across the region.
Asset Quality Improves
The group made noticeable progress in managing its risk profile during the period. Gross non-performing loans fell by KSh17.3 billion to settle at KSh203.8 billion, or about $1.58 billion. This is a reduction from the KSh221.1 billion recorded a year earlier. Consequently, the non-performing loan ratio declined to 15.1%, down from 18.7%.
Management attributed the improvement in asset quality to specific strategic measures. Recoveries and the rehabilitation of distressed facilities played a role, as did tighter credit-risk management protocols. While the drop in bad loans suggests a healthier book, maintaining this trajectory will depend heavily on the broader economic climate across East Africa. If inflation stabilizes and currency volatility eases, the bank might sustain this momentum without needing to set aside heavy provisions in the second half of the year.
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KCB maintained strong capital buffers, with its core capital-to-risk-weighted-assets ratio at 18.6%, well above the 10.5% statutory minimum. The total capital ratio stood at 21.6%, also above the 14.5% regulatory threshold.
The group’s total income rose by 9.5% to KSh108.1 billion, roughly $838 million. Non-funded income increased by 15.4% to KSh34.1 billion, or approximately $264 million, outpacing the growth in funded income. Funded income grew by 7% to KSh74 billion, equivalent to about $574 million.
Regional Growth and Dividends
Operations outside Kenya contributed significantly to the group’s overall performance. Regional operations accounted for 27.7% of profit before tax and 31.1% of the balance sheet. KCB Investment Bank recorded a 226.6% increase in profit before tax to KSh503.2 million, or about $3.9 million, supported by advisory mandates and capital-markets transactions.
The results show the growing contribution of KCB’s diversified regional franchise as the lender continues investing in digital banking, financial inclusion, and sustainable finance across East Africa.
The board declared an interim dividend of KSh3 per share, up 50% from KSh2 a year earlier. This decision results in a total payout of KSh9.64 billion, or about $75 million. Equity attributable to shareholders increased 16.3% to KSh357 billion, or roughly $2.77 billion. The loan-to-deposit ratio improved to 78.8% from 79.5%, while return on equity stood at 21.1%.
“The performance reflects the effectiveness of our governance framework, and the disciplined execution of our long-term strategy,” said KCB Group Chairman Joseph Kinyua.
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