KCB Group PLC delivered strong financial results in the first half of 2025 driven by growth in earning assets. Profit after tax grew 8% from Ksh 29.9 billion to Ksh 32.3 billion as its business franchises posted higher earnings.
The Board of Directors has recommended an interim dividend of Ksh 2 per share for the 2025 period and a further special dividend of Ksh 2 per share (in relation to the sale of National Bank of Kenya). This means shareholders will get a payout of Ksh 13 billion, the largest interim payment and first ever special dividend in the bank’s history.
“The business across markets remains resilient despite the tough operating environment in key markets like Kenya,” said KCB Group CEO, Mr Paul Russo, when he released the results. “Despite this, we have placed our customers at the fore, to ensure we meet their needs in a timely manner.”
Subsidiaries outside KCB Bank Kenya continued to turn in stronger performance, with profit before tax making up 33.4% of the overall Group earnings, and 31.4% of the balance sheet. PBT contribution from non-banking entities — KCB Investment Bank, KCB Asset Management and KCB Bancassurance Intermediary Limited — was up to 2.1% from 1.8% a similar period last year. Total assets remained stable at Ksh 1.97 trillion, despite the sale of NBK in the second quarter of the year.
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KCB Group’s loan portfolio stood at Ksh 1.18 trillion, representing a 2.8% growth (12% rise excluding the impact of NBK), supported by new business across subsidiaries. Customer deposits stood at Ksh 1.48 trillion, as deposit mobilization during the period netted off the impact of the sale of NBK and the impact of Uganda transitioning to its own Government to Government oil importation programme.
Total revenue grew 4.3%, boosted by higher net interest income that rose to Ksh 69.1 billion, from Ksh 61.3 billion. Interest income from customer loans increased on the back of improved yields and loan volumes in the period. The cost of funds remained at par with previous period and is expected to decline during the year as interest rates continued trending downwards across most markets.
The Group maintained its prudent cost management approach, with costs growing by 2.4% driven by variable costs and investments for future growth. Total expenses closed the period at Ksh 45.4 billion, with the cost-to-income ratio stable at 46.0%. Considering the challenging economic conditions in different sectors across the markets, the Group provisions for expected credit losses increased through judicious provisioning. Non-Performing Loans (NPL) closed at 18.7% from 19.2% in December 2024, while the stock on NPL stood at Ksh 221.1 billion.
“We have set ambitious growth goals under our strategy to transform communities and deliver returns for our shareholders by putting people and planet first, while pursuing business growth,” said KCB Group Chairman, Dr Joseph Kinyua. “The strong half-year performance and the projected trajectory of the business has allowed us a great bandwidth to propose a historic special and interim dividend to shareholders.”
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