KCB Group PLC has reported a profit after tax of Sh16.53 billion for the first quarter ending March 2025, marginally higher than the Sh16.48 billion posted in a similar period last year. The Group’s resilience and sustained revenue growth underscore its steady leadership in the regional financial services landscape.

Solid Financial Performance

Total revenues for the quarter rose by 2% to Sh49.4 billion, driven by a stable loan portfolio and expansion of new business lines. KCB Group’s balance sheet closed at Sh2.03 trillion, up from Sh1.99 trillion.

Subsidiaries outside KCB Bank Kenya contributed 32% of the profit before tax, reflecting the Group’s strategic focus on deepening its regional presence.

“The quarter’s performance reflects a strong push by teams across the business. It is notable that we were able to match the 2024 performance, which was impressive by all standards. Our robust balance sheet positions us well to support our customers through emerging challenges across the region,” said Paul Russo, Group CEO.

Operational Highlights

• Operating Costs: Rose by 7.8% to Sh22.7 billion, mainly due to workforce investments and technology upgrades.

• Asset Quality: Provisions for expected credit losses dropped by 11.3%, supported by tighter monitoring of Non-Performing Loans (NPLs). The Group’s gross NPLs stood at Sh233 billion, with an NPL ratio of 19.3%, mirroring persistent economic pressures across sectors.

• Customer Deposits & Loans: Deposits stood at Sh1.4 trillion, while customer loans and advances closed at Sh1.02 trillion despite foreign exchange pressures.

• Shareholder Value: Return on Equity remained strong at 23.3%, with Group shareholders’ equity surging by 28.4% to Sh297.1 billion.

• Capital Adequacy: The Group maintained strong capital buffers, with core capital at 16.7% against a minimum regulatory requirement of 10.5%.

Group Chairman Dr. Joseph Kinyua noted, “In the face of a challenging operating environment, KCB has demonstrated remarkable resilience and strategic depth. As we navigate global and regional headwinds, our focus remains on sustainable growth and creating shared value for all stakeholders.”

KCB & Access Bank complete National Bank of Kenya acquisition

Strategic Corporate Developments

National Bank of Kenya Sale

KCB is nearing the completion of the sale of National Bank of Kenya (NBK) to Access Bank PLC, having secured approvals from the Central Bank of Kenya and the National Treasury. The transaction is a significant step in KCB’s strategic portfolio optimization.

Expansion into Fintech

In March, KCB signed a binding agreement to acquire a 75% stake in Riverbank Solutions Limited, a regional fintech with operations in Kenya, Uganda, and Rwanda. The acquisition will boost KCB’s digital capabilities in banking agency, social payments, and non-banking solutions.

Global Partnerships

British International Investment (BII) extended a $100 million Tier 2 capital facility to KCB Bank Kenya, earmarked for scaling climate-related projects and women-led SMEs.

The Group also joined the Pan-African Payment and Settlement System (PAPSS), positioning KCB at the forefront of driving cross-border trade efficiencies in Africa.

Driving Women’s Financial Inclusion

KCB remains committed to supporting women entrepreneurs through the KCB FLME Proposition. The bank has allocated KShs. 250 billion over five years to bridge the financial access gap for women, with KShs. 150 billion already disbursed.

Technology and Innovation

In line with its 2024-2026 “Digital Leadership” strategy, KCB is set to roll out an enhanced mobile banking platform across Kenya, Tanzania, South Sudan, and Burundi. Additional innovations include the multi-currency card supporting 18 currencies, digital loans for MSMEs, and the Worship 360 App for faith-based organizations.

Sports and Community Impact

KCB continues to invest heavily in sports and community engagement:

• Committed Sh209 million as the Official Financial Partner of the 2025 Safari Rally.

• Rolled out the “Revvisha na KCB” campaign to promote financial empowerment, anchored by the high-yield Goal Savings Account.

• Launched the third edition of the KCB East Africa Golf Tour, committing Sh90 million to the year-long, multi-country tournament. The next leg is set for Kericho Golf Club.

Sustainability and Global Recognition

KCB secured Green Climate Fund (GCF) support to bolster MSME growth and signed a US$7 million partnership with Mastercard to drive regional economic development. The Group was also featured in the Financial Times’ 2025 list of Africa’s Fastest Growing Companies.

“Our vision is to build a simple, agile, and digitally-led bank that stands the test of time. We remain committed to driving impactful partnerships and delivering long-term value for our customers and communities,” Russo added.