High deposits rally KCB Group net profit to Sh45.8bn in Q3
Revenues increased by 22 per cent to Sh142.9 billion.
6mon agoVICTOR AMADALABusiness
KCB Group CEO Paul Russo
KCB Group's focus on growing beyond Kenya paid dividends in the first three months of 2025 with regional subsidiaries contributing 32 per cent of its gross earnings.
In the Group's results released Wednesday, the lender's net earnings grew marginally to Sh16.5 billion, up from Sh16.48 billion in the corresponding quarter in 2024.
Total revenues rose two per cent to Sh49.4 billion, while the Group’s balance sheet closed the period at Sh2.03 trillion, from Sh1.99 trillion on the back of a stable loan portfolio.
According to the KCB Group CEO, Paul Russo, the quarter’s performance reflects a strong push by teams across the business.
"Notably, we were able to match 2024 quarter one performance, which was impressive by all standards. The Group was resilient, supported by new business lines, deepening of digital channels and innovative customer value propositions."
"Our robust balance sheet means that we are well-positioned to support our customers in navigating the general emerging challenges across the region.”
Operating costs grew by 7.8 per cent, to Sh22.7 billion, largely driven by workforce-related expenses and budgeted investment in technology.
On asset quality, provisions for expected credit losses declined by 11.3 per cent, driven by an aggressive Non-Performing Loans (NPL) monitoring strategy, particularly targeting accounts with persistent delinquency and at risk of transitioning to NPL status, strengthened collateral positions and successful rehabilitation of key NPL exposures across the subsidiaries.
The Group’s stock of gross NPLs closed the period at Sh233 billion while the NPL ratio stood at 19.3 per cent, reflecting the challenging economic conditions in different sectors across the markets.
On the balance sheet size, the Group maintained the industry’s leadership position. Customer deposits stood at Sh1.4 trillion and despite pressure attributable to the appreciation of the Kenyan Shilling against the US dollar, customer loans and advances closed the quarter at Sh1.02 trillion.
The Group delivered value for shareholders, posting a return on equity of 23.3 per cent.
Total equity attributable to Group shareholders increased by 28.4 per cent from Sh231.5 billion to Sh297.1 billion.
The lender maintained strong capital buffers with all banking subsidiaries, except NBK compliant with its respective local regulatory capital requirements.
Its core capital as a proportion of total risk-weighted assets stood at 16.7 per cent against the statutory minimum of 10.5 per cent, while the total capital to risk-weighted assets ratio was at 19.7 per cent against a regulatory minimum of 14.5per cent.
The leading bank in East Africa in terms of capacity completed the sale of National Bank of Kenya Limited (NBK) to Access Bank PLC (Access Bank).
In April, it received regulatory approval from the Central Bank of Kenya (CBK) to progress the transaction.
KCB also received a nod from the Cabinet Secretary for the National Treasury and Economic Planning, 2025, approving the transfer of certain assets and liabilities of NBK to KCB Bank Kenya Limited under section 9 of the Banking Act.
In March, KCB Group PLC and Riverbank Solutions Limited signed a binding agreement that will see KCB acquire up to 75 per cent shareholding in the financial technology firm, to strengthen KCB Group’s distribution network across the region.
The successful completion of the transaction is subject to conditions that are customary for transactions of this nature, including receipt of regulatory approvals from, amongst others, the Central Bank of Kenya.
The deal will boost the Group’s digital capabilities by bringing on board Riverbank’s footprint in banking agency, social payments and business solutions.
In February, British International Investment (BII), the UK's development finance institution and impact investor, extended a $100 million (Sh1.2 billion) Tier 2 capital facility to KCB Bank Kenya to increase its lending capacity to climate-related projects and women-led SMEs.
KCB Group chairman, Joseph Kinyua, said that the growth demonstrates remarkable resilience and robust performance, underscoring the strength of fundamentals, strategic direction, and leadership depth.
"The environment is expected to be even tougher this year with all the headwinds streaming from global trade tariff wars to shifting geopolitics in the East region."
