KCB Group PLC has reported a profit after tax of KShs. 16.53 billion for the first quarter ending March 2025, marking a slight increase from the KShs. 16.48 billion recorded in a similar period last year. This performance, achieved against the backdrop of a challenging operating environment, was underpinned by strong regional growth, digital innovation, and a resilient balance sheet.
Total revenues rose by 2 percent to KShs. 49.4 billion, while the Group’s asset base expanded to KShs. 2.03 trillion, up from KShs. 1.99 trillion in Q1 2024. According to the Group’s financial disclosures, subsidiaries outside KCB Bank Kenya contributed 32 percent of profit before tax, reflecting the Group’s continued focus on strengthening its regional footprint.
“The quarter’s performance reflects a strong push by teams across the business,” said KCB Group CEO Paul Russo. “We were able to match the impressive 2024 Q1 results, thanks to new business lines, enhanced digital channels, and innovative value propositions.”
The Group also reported a 7.8 percent increase in operating costs to KShs. 22.7 billion, attributed to higher workforce expenses and continued investment in technology. However, provisions for expected credit losses declined by 11.3 percent, due to improved monitoring of non-performing loans (NPLs) and strengthened collateral management.
Despite these gains, gross NPLs stood at KShs. 233 billion, with the NPL ratio rising to 19.3 percent. The bank cited economic headwinds across various sectors and markets as contributing factors.
On the funding side, customer deposits reached KShs. 1.4 trillion, while loans and advances stood at KShs. 1.02 trillion. Shareholder returns remained strong, with return on equity at 23.3 percent and total equity rising by 28.4 percent to KShs. 297.1 billion.
The Group maintained a solid capital position, with core capital at 16.7 percent and total capital to risk-weighted assets at 19.7 percent—both well above regulatory minimums.
Group Chairman Dr. Joseph Kinyua noted the resilience of the bank amid global and regional uncertainty:
“In the face of a challenging operating environment, KCB has demonstrated remarkable resilience and robust performance, underscoring the strength of our fundamentals, strategic direction, and leadership depth.”
Strategic Moves and Innovation
During the quarter, KCB advanced several strategic initiatives:
- Sale of NBK to Access Bank: The Group is finalising the divestiture of National Bank of Kenya to Nigeria’s Access Bank, following regulatory approvals.
- Fintech Acquisition: In March, KCB signed a deal to acquire up to 75 percent of Riverbank Solutions Limited, a fintech with operations in Kenya, Uganda and Rwanda, to boost digital and agency banking.
- Climate Finance: KCB received a US$100 million Tier 2 capital facility from British International Investment (BII) to support climate projects and women-led SMEs.
- Pan-African Payment Integration: KCB became the first East African bank to integrate the Pan-African Payment and Settlement System (PAPSS), enabling faster and cheaper cross-border transactions.
The Group also announced the upcoming launch of a next-generation mobile banking platform across four countries, continued its women-focused financial inclusion efforts under the FLME Proposition with a KShs. 250 billion commitment, and deepened engagement in sports and community initiatives—including a KShs. 209 million sponsorship of the 2025 Safari Rally and KShs. 90 million for the EA Golf Tour.
KCB’s new multi-currency card now supports 18 currencies, reflecting the Group’s commitment to serving regional and international clients.
In recognition of its performance, the Group was recently named among Africa’s Fastest Growing Companies 2025 by the Financial Times.