TWV Team
KCB Group Plc has posted a strong set of half-year results for the period ending June 2025, reporting an 8% growth in net profit to KShs. 32.3 billion. The performance was driven by expansion in earning assets, despite a challenging operating environment.
The Board of Directors has proposed an interim dividend of KShs. 2.00 per share and a special dividend of KShs. 2.00 per share linked to the sale of the National Bank of Kenya (NBK). This historic payout, totalling KShs. 13 billion, marks the Bank’s largest interim payment and first-ever special dividend.
Solid Business Growth Across the Region
According to Group Chief Executive Officer, Paul Russo, the business has remained resilient across all markets. “Despite tough conditions in key markets such as Kenya, our focus has remained squarely on the customer, ensuring their needs are met promptly,” Mr Russo said during the results announcement.
Subsidiaries outside KCB Bank Kenya contributed 33.4% of the Group’s profit before tax and accounted for 31.4% of the balance sheet. Non-banking entities, including KCB Investment Bank, KCB Asset Management, and KCB Bancassurance Intermediary Limited, increased their contribution to 2.1% from 1.8% in the same period last year.
Total assets stood at KShs. 1.97 trillion, demonstrating the Group’s strong capacity to support customers across its seven operating countries, even after the NBK sale. The loan book grew 2.8% to KShs. 1.18 trillion (12% excluding NBK’s impact), supported by new business in subsidiaries. Customer deposits closed at KShs. 1.48 trillion, underlining customer confidence despite market transitions, including Uganda’s shift to its own government-to-government oil importation programme.
Revenue and Digital Growth
Total revenue grew 4.3%, buoyed by net interest income rising to KShs. 69.1 billion from KShs. 61.3 billion. Interest income from loans increased on the back of improved yields and volumes. The cost of funds remained flat and is expected to ease as interest rates decline across most markets.
Digital adoption remains a standout strength, with 99% of transactions by number conducted via non-branch channels. Non-funded income stood at KShs. 29.5 billion, representing 29.9% of total revenue.
On 11 August 2025, KCB launched a unified mobile app in Kenya, introducing self-onboarding, AI-powered features, data analytics, and a mini-app ecosystem to enhance customer experience and inclusivity.
Prudent Cost Management and Strong Capital Position
Operating expenses rose modestly by 2.4% to KShs. 45.4 billion, keeping the cost-to-income ratio stable at 46%. Provisions for expected credit losses were increased cautiously, while the Non-Performing Loan ratio improved to 18.7% from 19.2% in December 2024.
The Group maintained capital and liquidity well above regulatory requirements, with a core capital ratio of 17.0% (statutory minimum 10.5%) and total capital ratio of 19.7% (minimum 14.5%). Liquidity was at 47.2%, compared to 47.0% in the first half of 2024.
Shareholder returns remained strong, with Return on Equity at 22.2% and Return on Assets at 3.3%. Equity attributable to shareholders increased 27.3% to KShs. 306.8 billion.
Strategic Outlook
Group Chairman, Dr Joseph Kinyua, stated:
“In a regional environment marked by uncertainty, we continue to leverage our strengths to deliver on our strategy, putting People and Planet first while driving growth. This performance gives us the capacity to propose a historic interim and special dividend to our shareholders.”
Key Corporate Milestones
- The sale of 100% of NBK shares to Access Bank concluded on 30 May 2025.
- Six new branches opened in Kenya, Tanzania, and Rwanda.
- Rollout of the “MODE” mobile app campaign to promote a fully integrated digital banking experience.
- Issuance of KShs. 26.9 billion in green loans in Kenya and Tanzania; environmental screening of KShs. 133.2 billion in loans across four countries.
- Sponsorship of major sporting and community events, including WRC, Athletics Kenya Trials, Golf, and team sports, benefiting over 165 sportspeople.
- Recognition as one of Africa’s fastest-growing companies by the Financial Times and recipient of five international banking awards, including African Bank of the Year (ABLA) and Euromoney’s Best Bank for Corporate Responsibility. Group CEO Paul Russo also received a Special U.S. Congressional Commendation from the State of Georgia.
With its strong half-year performance, robust capital buffers, and continued investment in innovation, KCB Group has reinforced its position as a market leader in East Africa’s banking sector. The record KShs. 13 billion dividend payout underscores its commitment to rewarding shareholders, while its regional expansion, digital transformation, and sustainable finance initiatives highlight a forward-looking strategy designed to weather economic headwinds and deliver long-term value.
