KCB Group posts KSh60B ($460M) net profit in 2024, up 66%, driven by income growth and forex gains. Dividends return after 2023 pause. NPLs remain a concern.
KCB Group Reports KSh60B Net Profit, Reinstates Dividends
KCB Group PLC has reported a 66.1% surge in net earnings, closing the 2024 financial year with a record KSh60 billion (approximately $460 million) in net profit. The announcement, made on March 12, 2025, reflects a substantial rise from the KSh36.1 billion posted in 2023.
📌 Read more: KCB Group Expands in the DRC After TMB Acquisition
📌 Compare: Equity Group’s FY2024 Net Profit Hits KSh60.7B
💰 Dividend Reinstated After 2023 Suspension
KCB’s board has approved a KSh3 per share dividend, including a final dividend of KSh1.50, to be paid to shareholders on record as of April 3, 2025. This follows a one-year dividend freeze in 2023, although the 2024 payout remains below the KSh3.50 per share declared in 2019.
📌 Top Dividend-Paying Banks in Kenya 2024
📌 What KCB’s Dividend Means for Investors
📈 Key Financial Metrics for FY2024
- Total Operating Income: KSh204.8 billion (↑23.9%)
- Net Interest Income: ↑27.9% due to repricing of loans
- Net Loans and Advances: ↓9.6% to KSh990.4 billion
- Non-Funded Income: ↑16.5% to KSh67.5 billion
- Interest Expense on Deposits: ↑32.5% to KSh55.4 billion
A significant portion of non-funded income growth was driven by increased foreign exchange trading, helping offset rising interest costs.
“This performance illustrates our resolve to build a future-ready organization focused on delivering long-term value,”
— Paul Russo, CEO, KCB Group
📌 Inside: KCB’s Digital Transformation Journey
📌 How Banks Use Forex Trading to Diversify Revenue
📉 NPLs Rise, But Provisions Ease
Despite higher earnings, KCB’s asset quality deteriorated slightly:
- Gross Non-Performing Loans (NPLs): KSh225.6 billion (↑8.3%)
- NPL Ratio: 19.2%
- Loan-Loss Provisions: ↓11.1% to KSh29.9 billion
These figures reflect the challenging macroeconomic conditions, including high interest rates, currency volatility, and low private sector credit uptake.
📌 Why Non-Performing Loans Are Rising in Kenya
📌 KCB’s Credit Risk Strategy Amid Economic Headwinds
🌍 Strategic Outlook: Digital and Regional Expansion
KCB continues to double down on:
- Digital banking platforms
- Regional presence in the Democratic Republic of Congo, Rwanda, Uganda, and Tanzania
- Cross-border trade finance and treasury operations
The bank’s fintech investments and presence in high-growth markets position it as a leading player in East and Central Africa’s banking ecosystem.
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