Kenya Commercial Bank (KCB) has announced a substantial 64.9 percent increase in net profit for the full year of 2024, reaching 61.8 billion shillings compared to 37.5 billion shillings in 2023. This impressive performance is attributed to robust growth across all business segments, despite a challenging operating environment.
The Group’s total revenues surged by 24 percent to Sh204.9 billion, driven by higher interest income and strong non-funded income, particularly from foreign exchange trading. Total assets closed at 1.96 trillion shillings, underpinned by a solid deposit base and a stable loan portfolio.
CEO Paul Russo expressed confidence in the bank’s strategic direction, emphasizing a commitment to customer-centric innovation and technological advancement. “The strong performance illustrates our resolve over the past three years to build an organization for the future that is anchored on delivering value for our customers, shareholders, and all stakeholders,” he stated. “We are focused on ensuring we have fit-for-purpose technology that delivers seamless, reliable, secure, and innovative solutions.”
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Operating costs rose by 11.8 percent to 92.9 billion shillings, mainly due to higher staff costs, technology investments, inflationary pressures, and business-driven expenditures.
Despite these challenges, the Group improved asset quality, with provisions for expected credit losses declining by 11 percent, aided by the appreciation of the Kenya Shilling and successful rehabilitation of non-performing loan (NPL) exposures.
The NPL ratio stood at 19.2 percent, reflecting the tough economic conditions across various sectors in the markets where the Group operates.
On the balance sheet, customer deposits reached Sh1.4 trillion, while customer loans and advances totaled Sh990.4 billion.
Total equity attributable to shareholders increased by 20.8 percent to 274.9 billion shillings, and return on equity improved to 24.6 percent.
KCB Group also maintained strong capital buffers, with all banking subsidiaries, except National Bank of Kenya (NBK), remaining compliant with their respective local regulatory capital requirements.