KCB Group Delivers KShs. 16.5B Profit in Tough Q1

KCB Group Delivers KShs. 16.5B Profit in Tough Q1

KCB Group PLC has posted a profit after tax of KShs.16.53 billion for the first quarter ending March 2025. This is a slight increase from KShs.16.48 billion recorded in Q1 2024. The Group maintained a steady performance despite a challenging economic climate.

Total revenue rose by 2% to reach KShs.49.4 billion. The Group’s balance sheet hit KShs.2.03 trillion, up from KShs.1.99 trillion. Regional subsidiaries contributed 32% to the Group’s profit before tax, underscoring KCB’s focus on regional growth.

Group CEO Paul Russo credited the performance to teamwork and resilience. “We matched the strong Q1 performance from last year,” he said. “We focused on new business lines, digital growth and value-driven solutions. Our balance sheet strength allows us to support our customers through regional challenges.”

Solid Financials and Strategic Moves

Operating costs rose by 7.8% to KShs.22.7 billion. This was largely due to higher staff costs and technology investments. However, provisions for expected credit losses dropped by 11.3%, thanks to tighter monitoring of risky accounts and better recovery on non-performing loans (NPLs).

KCB Group Delivers KShs. 16.5B Profit in Tough Q1

The Group’s gross NPLs stood at KShs.233 billion, with an NPL ratio of 19.3%. Customer deposits reached KShs.1.4 trillion. Loans and advances closed the quarter at KShs.1.02 trillion despite currency pressures.

KCB delivered a return on equity of 23.3%. Shareholder equity rose 28.4%, from KShs.231.5 billion to KShs.297.1 billion. Capital adequacy remained strong, with the Group’s core capital at 16.7%, above the required 10.5%.

Chairman Dr. Joseph Kinyua noted the Group’s strength in a turbulent global environment. “We remain committed to long-term sustainability and delivering value to stakeholders,” he said.

The Group is finalizing the sale of National Bank of Kenya (NBK) to Access Bank PLC. It also plans to acquire a 75% stake in fintech firm Riverbank Solutions to boost its digital reach.

In March, KCB secured a $100 million loan from British International Investment to support green projects and women-led SMEs. The Group also joined the Pan-African Payment and Settlement System (PAPSS) to support faster and cheaper cross-border trade.

KCB has committed KShs.250 billion to support women entrepreneurs over five years. It is also upgrading its mobile banking platforms across East Africa.

The Group remains active in sports and social impact. It pledged KShs.209 million to sponsor the 2025 Safari Rally and KShs.90 million for the EA Golf Tour. KCB also launched a new multi-currency card supporting 18 currencies for global transactions.

Through strategic partnerships and digital innovation, KCB continues to strengthen its leadership across the region.