KCB Group PLC has posted robust financial results for the first half of 2025, delivering an 8% rise in profit after tax to KShs 32.3 billion, despite a challenging macroeconomic environment in key markets. The growth was fueled by expanding earning assets and sustained focus on leveraging its regional scale to drive value for shareholders, customers, and communities.
In a landmark move, the Board of Directors has recommended an interim dividend of KShs 2.00 per share alongside a special dividend of KShs 2.00 per share, following the sale of National Bank of Kenya (NBK). The combined payout of KShs 13 billion marks the largest interim distribution and the first-ever special dividend in the bank’s history.
“The business across markets remains resilient despite the tough operating environment. Our priority remains placing customers at the fore, ensuring we meet their needs in a timely manner,” said Group CEO Paul Russo during the results announcement.
Strong Regional and Subsidiary Contributions
Subsidiaries outside Kenya contributed 33.4% of the Group’s pre-tax profit, supported by operations in Rwanda, Uganda, Tanzania, Burundi, South Sudan, and the Democratic Republic of Congo. Non-banking entities—including KCB Investment Bank, KCB Asset Management, and KCB Bancassurance—saw their share of PBT grow to 2.1% from 1.8% in the same period last year.
Despite the NBK sale in Q2, total assets remained steady at KShs 1.97 trillion, reflecting the Group’s capacity to serve customers across its seven operating markets. The loan portfolio grew by 2.8% to KShs 1.18 trillion, or 12% excluding NBK’s impact, while customer deposits stood at KShs 1.48 trillion, underscoring sustained customer confidence.
Revenue Growth and Digital Expansion
Total revenue increased by 4.3%, driven by higher net interest income, which climbed to KShs 69.1 billion from KShs 61.3 billion. Interest income growth was supported by improved yields and loan volumes, while the cost of funds remained stable.
Digital channels continued to dominate customer interactions, with 99% of transactions conducted outside branches. In August, KCB launched a unified mobile app with self-onboarding capabilities, AI-driven analytics, and a mini-app ecosystem—aimed at boosting customer experience and inclusivity.
Operational Efficiency and Asset Quality
Operating expenses rose modestly by 2.4% to KShs 45.4 billion, maintaining a cost-to-income ratio of 46.0%. Provisions for expected credit losses increased in response to challenging sector conditions, while non-performing loans improved to 18.7% from 19.2% in December 2024.
Capital buffers remained strong, with a core capital ratio of 17.0% against the statutory minimum of 10.5%, and a liquidity ratio of 47.2%. Return on equity stood at 22.2%, while return on assets was 3.3%.
Strategic Investments and ESG Commitments
Key corporate milestones in H1 2025 included:
- Completion of NBK’s sale to Access Bank on May 30, 2025.
- Opening six new branches in Kenya, Tanzania, and Rwanda.
- Issuing KShs 26.9 billion in green loans in Kenya and Tanzania, and screening KShs 133.2 billion in loans for environmental and social compliance.
- Sponsoring major sporting events including WRC Safari Rally, Athletics Kenya Championships, and golf tournaments.
The Group’s ESG leadership and innovation earned it multiple accolades, including the African Bank of the Year award by the African Business Leadership Awards and recognition as one of Africa’s fastest-growing companies by the Financial Times. CEO Paul Russo also received a special U.S. Congressional Commendation from the State of Georgia for his contribution to East Africa’s banking sector.
Outlook
Chairman Dr. Joseph Kinyua expressed confidence in the Group’s strategic direction, noting that the strong H1 performance has provided “the bandwidth to propose a historic special and interim dividend to shareholders.” KCB will continue to prioritize people and planet alongside profitable growth, with a focus on transforming communities across its markets.
