KCB Group Plc has reported a strong performance for the nine months to September 2025, posting KSh 47.3 billion in net profit on the back of rising income streams and tight cost controls. The Group’s total assets rose to KSh 2.04 trillion, even after completing the sale of National Bank of Kenya (NBK) earlier in the year.
On a like-for-like basis, the balance sheet expanded by 10.9%, underscoring KCB’s continued ability to support lending and economic activity across its seven operating markets.
Credit Growth and Revenue Performance
Gross loans increased by 7% to KSh 1.24 trillion, driven by strategic lending to critical economic sectors including construction, agriculture, manufacturing, energy and water.
According to the financial results released Wednesday, total revenue grew by 4.5% to KSh 149.4 billion, buoyed by a 12.4% rise in net interest income to KShs 104.3 billion. Non-interest income stood at KShs 45.1 billion, accounting for 30.2% of total revenue.
The Group said reduced foreign exchange earnings and lower fees from TMB, following branch closures in Eastern DRC, weighed on NFI growth. However, the recently launched mobile banking app, featuring self-onboarding capabilities, helped maintain digital transaction volumes.
KCB shareholders to pocket Sh4 per share dividend; 2025 half-year net profit hits Sh31.5bn
Subsidiaries Drive Regional Contribution
KCB Group subsidiaries—excluding KCB Bank Kenya—continued to deliver strong results, contributing 35% of profit before tax and 31.3% of assets.
Non-banking subsidiaries posted notable growth:
- KCB Bancassurance: KSh 833 million (+16%)
- KCB Investment Bank: KSh 230 million (+90%)
- KCB Asset Management: KSh 118 million (+71%)
The Group’s regional operations remain a significant pillar in its diversification strategy.
Cost Management and Asset Quality
Operating expenses grew by only 2.0%, below prevailing inflation, helping improve the cost-to-income ratio to 46.2%from 47.4% a year earlier.
The Non-Performing Loans (NPL) ratio dropped to 17.8% from 18.5%, supported by recoveries and the NBK sale.
KCB maintained strong regulatory buffers with a core capital ratio of 17.0% (minimum 10.5%), total capital ratio of 19.6% (minimum 14.5%), and a liquidity ratio of 46.7%.
Return on equity stood at 21.6%, while return on assets was 3.1%. Shareholders’ equity closed at KSh 308.5 billion.
Management Outlook
Group CEO Paul Russo said the results reflect the bank’s resilience amid a difficult operating environment.
“Despite a tough operating environment in all our markets, we have delivered a strong performance showing the resilience of the Group,” Russo said, noting continued execution of the “Transforming Today Together” strategy aimed at improving customer experience and shareholder value.
Group Chairman Dr Joseph Kinyua maintained an optimistic outlook, saying the bank remains well-positioned to finish the year strongly.
Strategic Highlights
The reporting period also saw several key developments:
- Dividend payout of KSh 4.00 per share (KSh 13 billion total) on November 11
- Agreement to acquire a minority stake in Pesapal, pending regulatory approvals
- Partnership with Invest Kenya to support foreign investors
- Release of the latest sustainability report, with KSh 578.3B in loans screened for ESG risks and KSh 53.2B disbursed as green loans
- Afreximbank partnership to jointly deploy over US$800 million to support investors in Vipingo SEZ
- Completion of NBK sale to Access Bank on May 30, 2025
- Several international awards recognising KCB as one of Africa’s fastest-growing financial institutions
KCB said it will continue strengthening its digital channels, regional business units, and sustainability agenda as part of its long-term growth strategy.
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