KCB Group has announced a remarkable performance for the fiscal year 2024, with its net profit increasing from Sh36.18 billion to reach Sh60.09 billion.
This impressive growth was primarily driven by a robust increase in net interest income, highlighting the bank’s strong financial health and effective management strategies.
The group’s total operating income for last year rose by 24% to Sh204.87 billion from Sh165.24 billion in 2023, driven by higher interest income and a strong non-funded income, particularly from foreign exchange trading.
Despite an increase in total operating expenses to Sh122.89 billion, driven by rising staff costs, technology investments, and inflationary pressures, the Group made notable progress in asset quality management. KCB Group’s total assets at the end of the year stood at Sh1.96 trillion, with customer deposits climbing to Sh1.38 trillion from Sh1.69 trillion in 2023.
Notably, KCB Group’s subsidiaries, excluding KCB Bank Kenya, contributed 34.9% to total assets and 30.3% to the profit after tax, showcasing the diversified strength of the Group’s operations. Customer loans and advances, on the other hand, decreased from Sh1.10 trillion to Sh990.41 billion.
The gross non-performing loans (NPLs) stood at Sh225.69 billion from Sh208.30 billion, with the NPL ratio at 19.2%. Non-funded income accounted for 33% of total revenues, bolstered by increased earnings from trade finance, transaction fees, and forex operations.
The Group also maintained solid capital buffers, with a core capital to risk-weighted assets ratio of 16.8%, well above the regulatory minimum of 10.5%. The total capital ratio stood at 19.4%, against a required 14.5%, further highlighting the Group’s financial stability and resilience.
In light of this stellar performance, KCB Group has declared a dividend of Sh3.00 per share for its shareholders for the FY2024. This dividend includes an interim payment of Sh1.50 per share that was disbursed on September 2024.
The other proposed final dividend of Sh1.50 per share, is to be paid around 23rd May 2025 to shareholders registered by the end of 3rd April 2025. The announcement is a testament to the bank’s commitment to delivering value to its investors, reflecting its confidence in sustaining growth and profitability in the coming years.
With 3.21 billion shares outstanding, KCB Group boasts a market capitalization of Sh142 billion. This substantial market presence showcases the bank’s significant role in the financial sector and its influence on the market. The bank’s performance and strategic initiatives continue to attract investor confidence, positioning it for sustained growth and success in the future.
According to Paul Russo, KCB Group CEO, the Group is committed to building a future-ready organization that delivers value to customers, shareholders, and all stakeholders.
“The strong performance illustrates our resolve over the past three years to build an organization for the future. The group strives to be more agile by rethinking our customer-centered value propositions and leveraging group capabilities in the markets we operate in. Our focus is on ensuring we have fit-for-purpose technology that drives seamless, reliable, secure, and innovative solutions for our customers,” he said.
