KCB Group has reported a remarkable 86% increase in profit after tax for the first half of 2024, reaching KES 29.9 billion. The Group’s resilient performance was driven by strong revenue growth across its businesses, both funded and non-funded income lines.
The impressive financial results have enabled the Board to recommend an interim dividend of KES 1.50 per share, the largest interim payout in the lender’s history. This move signals the Group’s confidence in its long-term growth prospects and commitment to shareholder value creation.
“We delivered a commendable first half of the year, despite strong headwinds in the operating environment, especially in Kenya, thanks to the goodwill and confidence from our customers and commitment by our staff,” said KCB Group CEO Paul Russo.
The Group’s total assets grew by 6% to KES 1.98 trillion, underpinned by stable customer deposit growth, which closed the period at KES 1.49 trillion. Net loans and advances also saw a 7% jump, reaching KES 1.03 trillion, as the Group continued to support its customers’ business activities.
Diversification has been a key driver of KCB’s performance, with the contribution by its subsidiaries (excluding KCB Bank Kenya) increasing to 37.8% in pretax profits and 34.4% in total assets.
However, the Group faced some challenges, with its gross non-performing loan (NPL) book standing at KShs. 212 billion, resulting in an NPL ratio of 18.5%. To mitigate the impact of the increased NPLs, KCB has implemented various measures, including enhanced provisions, which grew by 20%, and a regulatory coverage ratio of 104.3%.
“Looking ahead, we see a stronger second half, leveraging on our Transforming Today Together strategy and the expected economic turnaround in the markets we operate in,” added Russo. “We are confident that this strategy will give fresh impetus to our business, as we focus on cost optimization.”
The Group’s performance has also been recognized through various accolades, including being listed among Kenya’s top 3 most valuable brands by Brand Finance, a UK-based consultancy, and receiving awards for its customer excellence and women in banking initiatives.
“KCB Group demonstrated remarkable strength and adaptability amid global and local challenges, by delivering good asset growth and improved capital adequacy ratios,” said KCB Group Chairman Dr. Joseph Kinyua. “This performance has enabled the Board to recommend an interim dividend of KES 1.50 per share.”
