KCB Group has reported a net profit of KShs.16.53 billion in the first quarter of the year ending March 2025. This is as compared to KShs.16.48 billion reported a similar period last year.
The marginal rise in profitability was on the back of a 2% rise in revenues to Ksh. 49.4 Billion. This was due to an 8.5% rise in the Net Interest Income to Ksh. 33.7 Billion. On the other hand, Non-Interest Income declined by 9.8% to Ksh. 15.7 Billion.
On the other hand, operating expenses rose by 3.3% to Ksh. 28.2 Billion. This a rise in the staff costs to Ksh. 10.9 Billion as compare to Ksh. 9.6 Billion in the previous year.
Loan loss provisions declined by 11% to Ksh. 5.6 Billion driven by an aggressive Non-Performing Loans (NPL) monitoring strategy. The Group’s stock of gross NPLs closed the period at KShs.233 billion while the NPL ratio stood at 19.3%, reflecting the challenging economic conditions in different sectors across the markets.
Customer deposits stood at KShs.1.4 trillion and despite pressure attributable to the appreciation of the Kenyan Shilling against the US dollar, customer loans and advances closed the quarter at KShs.1.02 trillion.
The profit before tax contribution by the subsidiaries outside KCB Bank Kenya improved to 32%, resulting from the Group’s focus on deepening regional scale.
Group Chief Executive Officer, Paul Russo “The quarter’s performance reflects a strong push by teams across the business. It is notable that we were able to match 2024 quarter one performance, which was impressive by all standards. The Group was resilient, supported by new business lines, deepening of digital channels and innovative customer value propositions. Our robust balance sheet means that we are well positioned to support our customers to navigate the general emerging challenges across the region”
He added that, “As we steer the remainder of the year, our focus is on leveraging the Group’s scale, capabilities, people and partners, to deepen relationships and financial inclusion. We will continue to harness technology to enhance banking services and drive relevant products and services that contribute to economic growth, sustainability, and shareholder value.”