KCB Group PLC posted a robust financial performance for the nine months ending September 2024, with a 49% surge in profit after tax to KSh45.8 billion from KSh30.7 billion posted a similar period last year.
This growth was driven by sustained revenue expansion.
Key Highlights
- Revenue Growth: Total revenue increased by 22% to Sh142.9 billion, fueled by growth in both funded and non-funded income lines across subsidiaries.
- Balance Sheet Expansion: The group’s balance sheet expanded to Sh2 trillion, solidifying its position as the leading financial institution in East and Central Africa.
- Diversification Benefits: Contributions from subsidiaries outside of Kenya, particularly TMB in the DRC, improved significantly, with non-funded income (NFI) boosted by foreign exchange income, transaction fees, and strong performance from TMB.
- Strong Loan Growth: Net loans and advances rose to Sh1.1 trillion, driven by growth in retail lending, which offset the impact of the shilling’s appreciation on foreign currency-denominated loans.
- Increased Provisioning: The group’s NPL ratio increased to 18.5%, leading to a 12.2% increase in provisions to account for economic challenges in various sectors.
CEO’s Outlook
KCB Group CEO Paul Russo expressed optimism about the future, stating, “We have continued to support our customers while maintaining strong fundamentals. We anticipate a strong end to the year, benefiting from improving market conditions, innovative solutions, and the dedication of our talented workforce.”
Russo further emphasised the group’s commitment to regional trade and social impact, highlighting investments in initiatives to connect millions of people to opportunities across the African continent.
Despite the challenging operating environment, KCB Group’s strong performance demonstrates its resilience and strategic focus on diversification and customer-centric solutions.
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