KCB Group has announced that its net profit grew by 64.9% to hit KShs. 61.8 billion for the full year 2024. This was a rise from KShs. 37.5 billion reported a similar period last year.
The rise in profitability was on the back of 24.0%, rise in Total Income to KShs.204.9 billion from KShs.165.2 billion, with net interest income increasing by 28.0%. Non-funded income contribution of 33.0% of the total
revenues was boosted by fees & commissions from transactions, trade finance and forex.
On the other hand, Operating costs grew by 11.8%, to KShs.92.9 billion, impacted by staff costs, technological investments, inflationary pressures and business-driven expenditure.
The Group’s balance sheet closed the year at KShs.1.96 trillion, funded by a strong deposit franchise and stable loan portfolio, despite the tough operating environment.
Provisions for expected bad debts declined by 11.0%, driven by appreciation of the Kenya Shilling, successful rehabilitation of key NPL exposures and an aggressive recovery strategy. The Group’s stock of gross NPLs closed the period at KShs.225.7 billion. The NPL ratio stood at 19.2%, reflecting the hard economic conditions in different sectors across the markets.
Customer deposits closed the year at KShs.1.4 trillion and despite pressure attributable to the appreciation of the Kenyan Shilling against the US dollar, customer loans and advances stood at KShs.990.4 billion.
Return on equity improved to 24.6% up from 17.8% last year. Total equity attributable to Group shareholders increased by 20.8% from KShs.227.5 billion to KShs.274.9 billion, highlighting the sustained value that the Group continued to deliver for shareholders.
The Group maintained strong capital buffers with all banking subsidiaries except NBK compliant with their respective local regulatory capital requirements. Group core capital as a proportion of total risk-weighted assets stood at 16.8% against the statutory minimum of 10.5% while the total capital to risk-weighted assets ratio was at 19.4% against a regulatory minimum of 14.5%.
KCB Group CEO Paul Russo, said, “The strong performance illustrates our resolve over the past 3 years to build an organisation for the future that is anchored on delivering value for our customers, shareholders and all stakeholders. The Group strives to be more agile by rethinking our customer-centered value propositions and leveraging Group capabilities in the markets where we operate in. Our focus is on ensuring we have fit-for-purpose technology that delivers seamless, reliable, secure, and innovative solutions for our customers.”
The Board proposed a final dividend payout of KShs. 1.50 per share, subject to shareholder approval. This is in addition to an interim payout of KShs. 1.50 per share which was paid out in September 2024. This brings the total dividend payout for the year to KShs. 3.00 per share, amounting to a total of KShs. 9.6 billion for the year 2024.