KCB Group Reclaims Most Profitable Bank In East Africa With 69% Rise In Q1 2024 Net Profit

KCB Group PLC recorded a 69% growth in net profit to Ksh. 16.5 billion in Q1 2024 from Ksh. 9.8 billion, regaining its position as East Africa’s most profitable Bank and cementing leadership as the largest lender by assets.

The performance—a historic quarterly milestone—which was boosted by revenue growth across the Group network also saw the balance sheet close the quarter at KShs.2.0 trillion, from KShs.1.6 trillion in a similar period last year.

Total revenues increased by 31.6% to KShs.48.5 billion driven by both funded and non-funded lines. The non-funded income, at 36% of the total revenues, was supported by increased transaction volumes from customer confidence in our brand, adoption of digital banking, and alternative channels in making banking accessible at the convenience of our customers.

Read Also: KCB Group Net Profits Drop By 8% To Ksh 37.5 Billion

Commentary: Group Chief Executive Officer Paul Russo

“Despite a difficult operating environment across the region, we saw a strong revenue performance in the business as we entrenched prudent credit, liquidity, cost, and overall risk management. Consumer deposits continued to grow, a show of confidence that our clients have in the brand. Our deliberate investments in digital and payments capabilities as well as regional expansion approach continued to deliver impressive results,” said KCB Group Chief Executive Officer Paul Russo.

“We continued to leverage Group capabilities through the syndication of facilities and tapping on centers of excellence to drive operational efficiency. Under our shared services model, we prioritized automation of key processes, roll out of more products on our self-serve channels and review of loan application processes continued to drive customer obsession and reduce friction. Looking ahead, we are upbeat about the prospects in all the markets we operate in. Moreso, we seek to leverage the strong relationships we have built and our strong brand to drive growth in the medium term guided by our new 2024 – 2026 strategy dubbed: Transforming Today Together,” he added.

Financial Highlights

The Group’s Total Assets grew by 4% to Ksh. 2.0 trillion, funded by an increase in customer deposits from all segments withstanding the tough operating environment.

Read Also: Kenya Contributed 63.3% To KCB Group’s Profit Before Tax