KCB Group Plc reported a significant increase in profits for the first half of 2024, ending June 30th.
The group’s net earnings soared by 86% to KES 29.9 billion compared to the same period in 2023.
Net interest income grew by 35% due to improved yields and increased lending. Non-funded income also saw a 21% increase driven by digital banking, FX trading, and contributions from the DRC subsidiary, Trust Merchant Bank (TMB).
KCB maintained strong capital adequacy ratios, exceeding regulatory minimums. The group’s core capital ratio stood at 17.8%, while the total capital ratio was 20.3%.
Dividend Payout
Reflecting the strong performance, the Board recommended an interim dividend of KES 1.50 per share, totalling KES s4.8 billion. This marks the largest interim dividend payout in the bank’s history.
The payout will be made on or about 30 October 2024 to shareholders on the Register of Members at the close of business on 12 September 2024.
“We anticipate incremental growth in shareholder returns on strategy execution,” disclosed the Group Chief Finance Officer Lawrence Kimathi.
Contributions from KCB’s regional subsidiaries (excluding KCB Bank Kenya) continued to rise, reaching 37.8% of pre-tax profits and 34.4% of total assets during the first half.
However, KCB’s gross non-performing loan (NPL) book increased to KES 212 billion, resulting in an NPL ratio of 18.5%.
Looking Forward
KCB Group CEO Paul Russo expressed optimism for the second half, citing the bank’s “Transforming Today Together” strategy and anticipated economic improvements in their operating markets.
Both Group CEO Paul Russo and Group Chairman Dr Joseph Kinyua highlighted the bank’s resilience and adaptability in the face of local and global challenges.
“We delivered a commendable first half of the year, despite strong headwinds in the operating environment, especially in Kenya,” Group CEO Paul Russo said during an investor briefing on Wednesday.
“Looking ahead, we see a stronger second half, leveraging on our ‘Transforming Today Together strategy’ and the expected economic turnaround in the markets we operate in.”
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