KCB Group has posted a remarkable 66.1 percent increase in its full-year profit for 2024, reaching KSh60 billion compared to KSh36.1 billion a year earlier. This impressive growth, driven by higher net interest income, has enabled the bank to reinstate a final dividend of KSh1.50 per share. The total dividend payout for the year now stands at KSh3 per share, recovering from missing dividends in 2023.
The lender’s total operating income climbed by 23.9 percent to KSh204.8 billion from KSh165.2 billion in 2023, largely fueled by a 27.9 percent rise in net interest income. This growth reflected KCB’s strategic ability to reprice loans during the year, offsetting a 9.6 percent drop in net loans and advances to customers, which fell to KSh990.4 billion from KSh1.095 trillion.
Despite the strong income performance, customer deposit costs rose faster than interest income, surging by 32.5 percent to KSh55.4 billion from KSh41.8 billion. This mirrored a decrease in customer deposits, which fell by 18.4 percent to KSh1.38 trillion from KSh1.69 trillion in 2023.
Non-funded income also showed a steady increase, growing by 16.5 percent to KSh67.5 billion from KSh57.9 billion, supported by higher foreign exchange trading income.
KCB’s Chief Executive Officer, Paul Russo, highlighted the bank’s efforts over the past three years to build a more agile, customer-centered organization with robust group capabilities. “Our focus is on ensuring we have fit-for-purpose technology that delivers seamless, reliable, secure, and innovative solutions for our customers,” Russo stated.
In terms of cost management, the bank kept its non-deposit related cost growth to 5.2 percent, rising to KSh122.8 billion from KSh116.7 billion. Loan-loss provisioning costs fell by 11.1 percent to KSh29.9 billion from KSh33.6 billion in 2023, thanks to better credit management.
Notably, the group’s gross non-performing loans (NPLs) declined by 8.3 percent to KSh225.6 billion from KSh208.2 billion, signaling an improvement in loan quality.
With a renewed focus on innovative financial solutions and efficient cost management, KCB Group looks well-positioned for sustainable growth in the years ahead.
