KCB Group posts Sh16.5 billion profit after tax in Q1 2025
Group Chief Executive Officer Paul Russo said the quarter’s performance reflects a strong push by teams across the business
KCB Group Plc posted a profit after tax of Ksh 16.53 billion in the first quarter of the year ending March 2025, compared to Ksh 6.48 billion reported a similar period last year, with notable growth in key financial metrics.
Total revenues rose 2 per cent to Ksh 49.4 billion, while the Group’s balance sheet closed the period at Ksh 2.03 trillion, from Ksh 1.99 trillion on the back of a stable loan portfolio.
The profit before tax contribution by the subsidiaries outside KCB Bank Kenya improved to 32 per cent, resulting from the Group’s focus on deepening regional scale.
Group Chief Executive Officer Paul Russo said the quarter’s performance reflects a strong push by teams across the business.
“It is notable that 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 to navigate the general emerging challenges across the region.”
“As we steer the remainder of the year, our focus is on leveraging the Group’s scale, capabilities, people and partners, to deepen relationships and financial inclusion. We will continue to harness technology to enhance banking services and drive relevant products and services that contribute to economic growth, sustainability, and shareholder value” he added.
Financial Highlights
Operating costs grew by 7.8 per cent, to Ksh 22.7 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 Ksh 233 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 Ksh 1.4 trillion and despite pressure attributable to the appreciation of the Kenyan Shilling against the US dollar, customer loans and advances closed the quarter at Ksh 1.02 trillion.
The Group continued to deliver value for shareholders, posting a Return on equity of 23.3 per cent. Total equity attributable to Group shareholders increasing by 28.4 per cent from Ksh 231.5 billion to Ksh 297.1 billion.
The Group maintained strong capital buffers with all banking subsidiaries except NBK compliant with their respective local regulatory capital requirements. Group 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 14.5 per cent.
