Kenya Commercial Bank (KCB Group Plc) has today reported a 20.8% increase in its first-half profit before tax to KSh49.3 billion, or about $382 million, due to higher lending, deposit growth and stronger non-funded income supporting earnings growth.
KCB Group’s total assets expanded 16.8% to KSh2.3 trillion, or about $17.8 billion, while customer deposits rose 15.1% to KSh1.7 trillion, equivalent to roughly $13.2 billion. Gross loans increased 14.2% to KSh1.3 trillion, or about $10.1 billion, driven by lending to retail, small and medium-sized businesses and corporate customers.
“Our strong half-year performance reflects the resilience of KCB Group’s diversified business model, the strength of our regional footprint, and the confidence our customers continue to place in us,” said KCB Group CEO Paul Russo.
The Group’s total income rose 9.5% to KSh108.1 billion, about $838 million while its non-funded income increased 15.4% to KSh34.1 billion, or approximately $264 million, while funded income grew 7% to KSh74 billion, equivalent to about $574 million.
Asset quality also improved. The Group’s Gross non-performing loans fell by KSh17.3 billion to KSh203.8 billion, or about $1.58 billion, from KSh221.1 billion a year earlier. The non-performing loan ratio declined to 15.1% from 18.7%, which KCB attributed to recoveries, rehabilitation of distressed facilities and tighter credit-risk management.
Regional operations accounted for 27.7% of the group’s profit before tax and 31.1% of its balance sheet. KCB Investment Bank recorded a 226.6% increase in profit before tax to KSh503.2 million, or about $3.9 million, supported by advisory mandates and capital-markets transactions.
KCB’s loan-to-deposit ratio improved to 78.8% from 79.5%, while return on equity stood at 21.1%. Equity attributable to shareholders increased 16.3% to KSh357 billion, or roughly $2.77 billion.
The board declared an interim dividend of KSh3 per share, up 50% from KSh2 a year earlier, resulting in a payout of KSh9.64 billion, or about $75 million.
KCB maintained strong capital buffers, with its core capital-to-risk-weighted-assets ratio at 18.6%, well above the 10.5% statutory minimum. The total capital ratio stood at 21.6%, also above the 14.5% regulatory threshold.
The results underscore the growing contribution of KCB’s diversified regional franchise as the lender continues investing in digital banking, financial inclusion and sustainable finance across East Africa. KCB operates in Kenya, Tanzania, South Sudan, Uganda, Rwanda, Burundi and the Democratic Republic of Congo. The group has 460 branches, 1,247 ATMs and more than 1.4 million merchants and agents across the region.
“The performance reflects the effectiveness of our governance framework, and the disciplined execution of our long-term strategy,” said KCB Group Chairman Joseph Kinyua.