KCB Group Plc reported an 11% rise in full-year net profit on Wednesday, helped by strong loan growth, higher digital income and tighter cost management, as the lender raised its dividend payout to shareholders.
The regional banking group posted a net profit of KSh68.4 billion ($528 million) for the year ended December 2025, up from KSh61.6 billion a year earlier.
The board proposed a final dividend of KSh3 per share, in addition to an interim dividend of KSh4 paid in November, bringing the total payout to KSh7 per share, or about KSh22 billion.
Total assets at East Africa’s largest lender by assets rose 9.3% to KSh2.15 trillion, despite the group’s divestiture from National Bank of Kenya during the year.
Customer lending expanded 15% to KSh1.59 trillion, helping drive revenue growth as the bank increased support to households, businesses and the public sector across its markets.
Total income climbed to KSh214 billion from KSh204 billion in the previous year, with non-funded income contributing 31% of total revenues, reflecting growth in digital banking services.
“Our 2025 performance reflects the strength of the KCB franchise, the resilience of our regional footprint, and the continued trust that customers place in us,” Group Chief Executive Paul Russo said.
The lender also improved operational efficiency, with its cost-to-income ratio falling to 42.5% from 45.4%, while operating expenses declined 2.5% year-on-year.
KCB said its regional subsidiaries continued to play a larger role in earnings, contributing 30.7% of profit before tax, highlighting the group’s diversification strategy across East Africa.
Non-banking units also posted solid growth, with KCB Bancassurance Intermediary reporting profit before tax of KSh1.14 billion, KCB Investment Bank earning KSh348 million, and KCB Asset Management generating KSh160 million.
Asset quality improved during the period, with the non-performing loan ratio falling to 16.9% from 19.2%, supported by loan recoveries and the separation of National Bank of Kenya’s loan book.
The group maintained strong capital buffers, with core capital at 18.4% of risk-weighted assets, above the regulatory minimum of 10.5%, while total capital stood at 22.1%, compared with the 14.5% requirement.
Chairman Joseph Kinyua said the bank remained optimistic about economic prospects across its markets despite rising global uncertainties.
“Looking ahead, we are optimistic about sustained business activity and economic growth prospects across the markets we operate in,” he said.
During the year, the group expanded its digital and payments ecosystem, including plans to invest in Pesapal Limited to accelerate digital commerce across Africa. It also secured a $150 million financing package from the African Development Bank Group to support green finance and trade finance capacity for businesses in Kenya.
KCB also recently received approval from the Competition Authority of Kenya to acquire a 75% stake in a payments technology firm, as the bank deepens its push into financial technology and digital payments.
The group said it expects continued economic activity in its regional markets in 2026, even as it monitors global geopolitical tensions and trade uncertainties.