KCB Group PLC profit after tax for the full year 2024 grew 64.9%, hitting KSh 61.8 billion, up from KSh 37.5 billion in the previous year. Speaking during the results announcement in Nairobi, KCB Group CEO Paul Russo attributed the Group’s strong financial performance to its ongoing transformation agenda.
“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.” said Russo.
Total income for the year rose by 24% to KSh 204.9 billion, supported by higher interest income and a strong non-funded income, particularly from foreign exchange trading. The Group’s subsidiaries (excluding KCB Bank Kenya) contributed 34.9% to total assets and 30.3% to profit after tax.
KCB Group’s balance sheet closed the year at a solid KSh1.96 trillion. Customer deposits climbed to KSh1.4 trillion, while customer loans and advances stood at KSh990.4 billion. Return on equity improved markedly to 24.6%, up from 17.8% the previous year.
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Operating expenses rose by 11.8% to KSh 92.9 billion, driven by rising staff costs, tech investments, and inflationary pressures. Despite this, the Group made notable progress in asset quality management, with provisions for expected credit losses falling by 11%, aided by the strengthening of the Kenya Shilling and improved recovery efforts. However, gross non-performing loans (NPLs) stood at KSh 225.7 billion, with the NPL ratio at 19.2%.
Non-funded income accounted for 33% of total revenues, bolstered by increased earnings from trade finance, transaction fees, and forex operations. Total equity attributable to shareholders grew by 20.8% to KSh 274.9 billion.
KCB Group also maintained solid capital buffers, with a Group core capital to risk-weighted assets ratio of 16.8%—well above the regulatory minimum of 10.5%. The total capital ratio stood at 19.4% against a required 14.5%.
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The KCB group board also proposed a final dividend of KSh 1.50 per share to be paid around 23rd May 2025 to shareholders registered by the end of 3rd April 2025, complementing the interim dividend paid in September. This brings the total dividend payout for FY 2024 to KSh 3.00 per share, translating to KSh9.6 billion in total returns to shareholders.
KCB Group Chairman Dr. Joseph Kinyua expressed optimism about the Group’s growth outlook, saying, “We are excited about the strong profits witnessed across all entities. We are optimistic that there will be a pickup in economic activity this year across markets, supported by resilience of key service sectors and agriculture, expected recovery in growth of credit to the private sector, and improved exports. We are continually ring-fencing our business by preserving capital and containing costs for long-term sustainability.”