- Strong revenue growth across all business segments solidifies KCB’s regional dominance.
- Total assets hit KShs. 1.96 trillion, backed by a stable loan portfolio and deposit base.
- Revenues soared by 24.0% to KShs—204.9 billion, fueled by higher interest and non-funded income.
- CEO Paul Russo attributes success to customer-focused innovation and strategic expansion.
- The Board proposes a total dividend payout of KShs. 3.00 per share, reinforcing shareholder confidence.
KCB Group has recorded impressive financial growth, driven by robust revenue expansion across all its business segments. The bank continues to strengthen its dominance in the region, cementing its reputation as a financial powerhouse.
The Group’s total assets surged to KShs. 1.96 trillion, supported by a solid deposit base and a resilient loan portfolio, despite prevailing economic challenges.
Total revenue climbed by 24.0% to KShs. 204.9 billion, largely fueled by an increase in interest income and non-funded income, particularly from foreign exchange transactions, fees, and commissions.
CEO Paul Russo: Innovation and Strategy at the Core of Growth
KCB Group CEO Paul Russo attributed the outstanding performance to a three-year transformation plan, focusing on customer-driven solutions, innovation, and regional expansion.
“This strong performance underscores our commitment to building a future-ready institution that consistently delivers value to customers, shareholders, and stakeholders. Our goal is to provide seamless, secure, and innovative financial solutions backed by cutting-edge technology,” said Mr. Russo while unveiling the results in Nairobi.
Key Financial Indicators
- Subsidiary Growth: KCB’s subsidiaries (excluding KCB Bank Kenya) contributed 34.9% of total assets and 30.3% of post-tax profit.
- Revenue Expansion: Total income jumped 24.0% to KShs. 204.9 billion, with net interest income rising by 28.0%.
- Non-Funded Income: Contributed 33.0% of total revenue, boosted by fees, commissions, trade finance, and forex transactions.
- Operating Costs: Increased 11.8% to KShs. 92.9 billion, attributed to higher staff expenses, technology upgrades, and inflationary pressures.
- Loan Portfolio & Asset Quality: Provisions for expected credit losses dropped by 11.0%, aided by a stronger Kenya Shilling and aggressive debt recovery measures.
- Non-Performing Loans (NPLs): Gross NPL stock stood at KShs. 225.7 billion, with an NPL ratio of 19.2%, reflecting economic hardships.
- Customer Deposits: Closed the year at KShs. 1.4 trillion, while loans and advances stood at KShs. 990.4 billion.
- Return on Equity (ROE): Improved to 24.6%, up from 17.8% in 2023, signaling enhanced shareholder value.
- Capital Position: The Group maintained strong capital buffers, with a core capital-to-risk-weighted assets ratio of 16.8%, surpassing the 10.5% statutory minimum.
Dividend Payout & Future Outlook
KCB Group’s Board has proposed a final dividend of KShs. 1.50 per share, bringing the total 2024 dividend to KShs. 3.00 per share. This translates to a total shareholder payout of KShs. 9.6 billion, reinforcing the bank’s commitment to investor rewards.
KCB Group Chairman Dr. Joseph Kinyua expressed confidence in economic recovery, citing growth in agriculture, private sector credit expansion, and improved exports.
“We anticipate increased economic activity in 2025. Our priority is safeguarding our business by maintaining strong capital reserves and managing costs efficiently for long-term sustainability,” Dr. Kinyua stated.
He further emphasized KCB’s dedication to sustainability and ESG (Environmental, Social, and Governance) principles, integrating climate action, social impact, and risk management into the bank’s long-term strategy.
