KCB Group Plc has recorded a remarkable 49% growth in profit after tax, reaching Sh45.8 billion for the first nine months of 2024, compared to Sh30.7 billion during the same period in 2023.
This growth, driven by robust revenue streams and international business diversification, cements KCB’s leadership in East Africa’s financial sector.
Financial highlights
The group's revenue surged by 22% to Sh142.9 billion, supported by growth in both funded and non-funded income lines. Subsidiaries outside Kenya significantly contributed, accounting for 36.6% of the profit after tax and 34% of total assets.
Key contributors included Trust Merchant Bank (TMB) in the Democratic Republic of Congo.
On the balance sheet, total assets hit Sh2.0 trillion, while customer deposits grew to Sh1.5 trillion. Net loans and advances increased to Sh1.1 trillion, bolstered by retail sector lending.
“Despite tough market conditions, we’ve maintained our resilience by providing tailored solutions to our customers across the region,” said KCB Group CEO Paul Russo. He highlighted the group's investments in regional trade and community impact as pivotal to its success.
Strategic initiatives and partnerships
KCB Group continued expanding its impact through notable partnerships:
A €230 million agreement with the European Investment Bank (EIB Global) to support SMEs, women-led businesses, and youth enterprises.
A strategic collaboration with Invest International to facilitate Dutch entrepreneurs operating in Africa through financing solutions.
Commitment to sustainability through a USD 540,000 Green Climate Fund for MSME climate projects.
In addition, KCB secured COMESA approval for the sale of National Bank of Kenya to Nigeria's Access Bank, marking a significant milestone in the Group's restructuring.
Operational excellence
The group maintained strong capital buffers, with core capital at 16.5% of total risk-weighted assets, surpassing regulatory requirements. Shareholders’ equity grew by 14% to Sh249 billion, driving an improved return on equity of 25.6%.
Notably, KCB’s NPL ratio stood at 18.5%, reflecting challenging economic conditions. Provisions for non-performing loans increased by 12.2%, underlining the group’s prudent approach to asset quality.
KCB was ranked among Kenya's top three most valuable brands by Brand Finance. Other awards included Best Banking Group Kenya (Finance Derivatives Awards) and Best in Customer Excellence (Tier 1).
With improving market conditions and a focus on innovation and sustainability, KCB Group anticipates a strong year-end performance.
Group Chairman Dr Joseph Kinyua emphasised the bank’s dedication to robust governance and sustainable business practices, reinforcing its commitment to delivering shareholder value.
#FeatureByKCBGroup