KCB Group PLC reported a 64.9% increase in profit after tax for 2024, reaching KES. 61.8 billion from KES. 37.5 billion in the previous year. This strong growth was driven by revenue expansion across all business segments.
Key Factors Behind Profit Growth:
Revenue Growth – Total income increased by 24.0% to KES. 204.9 billion, fueled by a 28.0% rise in net interest income and strong non-funded income, particularly from fees, commissions, trade finance, and forex trading.
Diversification Strategy – Subsidiaries contributed 34.9% to total assets and 30.3% to profits, demonstrating the success of the Group’s regional expansion and business diversification.
Cost Efficiency – Despite a 11.8% rise in operating costs to KES. 92.9 billion due to staff expenses, technology investments, and inflation, revenue growth outpaced costs, supporting higher profitability.
Improved Asset Quality – Credit loss provisions dropped by 11.0%, aided by Kenya Shilling appreciation, the rehabilitation of non-performing loans [NPLs], and an aggressive recovery strategy.
Robust Balance Sheet – Customer deposits closed at KES. 1.4 trillion, while loans and advances stood at KES. 990.4 billion. Despite economic challenges, KCB maintained a stable loan portfolio.
Higher Return on Equity [ROE] – ROE improved to 24.6% from 17.8%, reflecting enhanced shareholder value and stronger financial performance.
Capital Strength – The Group maintained strong capital buffers, exceeding regulatory requirements, ensuring long-term financial stability.
Dividend Growth – A total dividend payout of KES. 3.00 per share was proposed, amounting to KES. 9.6 billion, showing the Group’s commitment to rewarding shareholders.
KCB’s CEO, Paul Russo, credited the growth to customer-centric innovations, technology investments, and a focus on sustainability. Chairman Joseph Kinyua emphasized continued economic resilience, cost control, and sustainability integration in future strategies.
Overall, KCB’s diversified revenue streams, efficient cost management, and improved credit quality drove strong profit growth in 2024.
