KCB Group shareholders are set to pocket a Sh9.6 billion payout after the listed lender reported Sh61.8 billion profit after tax for the year ending December 2024, fueled by robust business growth.
The performance represents a 66.1 percent profit rise from the Sh36.1 billion net profit reported in 2023.
KCB declared a final dividend of Sh1.50 per share bringing the total dividend for the year to Sh3.0 per share or a cumulative Sh9.6 billion.
The amount will be paid to investors in May, in addition to an interim payout of Sh1.50 per share which was paid out in September 2024.
Local individual investors are set to earn Sh2.49 billion from their 25.86 per cent stake, while foreign investors will pocket Sh1 billion in dividends.
Government institutions including the National Social Security Fund (NSSF) and the National Treasury are also set to benefit from the windfall.
The John Mbadi-led institution is set to receive Sh1.89 billion from its 19.76 per cent stake while NSSF will get a payout of Sh960 million.
KCB Chief Executive Officer Paul Russo said the lender has over the past three years sought to strike a balance between delivering value to customers and shareholders while supporting growth through new investments and technology.
KCB Group profit after tax soars 66pc to Sh61.8 billion in one year
“The strong performance illustrates our resolve over the past 3 years to build an organisation for the future that is anchored on delivering value for our customers, shareholders and all stakeholders. The Group strives to be more agile by rethinking our customer-centered value propositions and leveraging Group capabilities in the markets where we operate in,” said Mr Russo.
“Our focus is on ensuring we have fit-for-purpose technology that delivers seamless, reliable, secure, and innovative solutions for our customers. Beyond financial performance, we stayed true to our brand purpose, For People. For Better, by continuously innovating and delivering products that open doors of opportunity for all our stakeholders,” he added.
KCB boasts as Kenya’s most profitable bank and the largest lender by assets ahead of its closest rival Equity Group.
The bank’s total income in the review period surged 24.0 per cent to Sh204.9 billion, driven by a 28 per cent increase in net interest income and non-funded income contribution of 33.0 percent from fees and commissions from transactions, trade finance and forex.
Operating costs grew by 11.8 percent, to Sh92.9 billion, impacted by staff costs, technological investments, inflationary pressures and business-driven expenditure.
Provisions for expected credit losses declined by 11.0 percent, highlighting the lender’s efforts to improve asset quality, although the non-performing loan (NPL) ratio remained at 19.2 percent due to unfavorable market conditions.
On the balance sheet side, customer deposits closed the year at Sh1.4 trillion while customer loans and advances stood at Sh990.4 billion.
The lender’s impressive performance was attributed to its diversification strategy, with subsidiaries, excluding KCB Bank Kenya, contributing over a third of total assets and profit after tax.
