KCB Posts Ksh 16.5B In Q1 Profits, Balance Sheet At Ksh 2.03 Trillion

KCB Group PLC posted a profit after tax of KShs.16.53 billion in the first quarter of the year ending March 2025, compared to KShs 16.48 billion reported in a similar period last year, with notable growth in key financial metrics.

Total revenues rose 2% to KShs . 49.4 billion, while the Group’s balance sheet closed the period at KShs 2.03 trillion, from KShs 1.99 trillion on the back of a stable loan portfolio.

The profit before tax contribution by the subsidiaries outside KCB Bank Kenya improved to 32%, resulting from the Group’s focus on deepening regional scale.

Group Chief Executive Officer, Paul Russo said, “The quarter’s performance reflects a strong push by teams across the business. Notably, we were able to match 2024 quarter one performance, which was impressive by all standards. The Group was resilient, supported by new business lines, deepening of digital channels, and innovative customer value propositions. Our robust balance sheet means that we are well-positioned to support our customers in navigating the general emerging challenges across the region.”

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Key Numbers:

Operating costs grew by 7.8%, to KShs 22.7 billion, largely driven by workforce-related expenses and budgeted investment in technology.

On asset quality, provisions for expected credit losses declined by 11.3%, driven by an aggressive Non-Performing Loans (NPL) monitoring strategy, particularly targeting accounts with persistent delinquency and at risk of transitioning to NPL status, strengthened collateral positions, and successful rehabilitation of key NPL exposures across the subsidiaries.

The Group’s stock of gross NPLs closed the period at KShs 233 billion while the NPL ratio stood at 3%, reflecting the challenging economic conditions in different sectors across the markets.

On the balance sheet size, the Group maintained the industry’s leadership position. Customer deposits stood at KShs 1.4 trillion, and despite pressure attributable to the appreciation of the Kenyan Shilling against the US dollar, customer loans and advances closed the quarter at KShs 1.02 trillion.

The Group continued to deliver value for shareholders, posting a Return on equity of 3%. Total equity attributable to Group shareholders increased by 28.4% from KShs 231.5 billion to KShs 297.1 billion.

The Group maintained strong capital buffers with all banking subsidiaries except NBK compliant with its respective local regulatory capital requirements. Group core capital as a proportion of total risk-weighted assets stood at 16.7% against the statutory minimum of 10.5%, while the total capital to risk-weighted assets ratio was at 19.7% against a regulatory minimum of 14.5%.

Group Chairman Joseph Kinyua said, “In the face of a challenging operating environment, KCB has demonstrated remarkable resilience and robust performance, underscoring the strength of our fundamentals, strategic direction, and leadership depth. The environment is expected to be even tougher this year with all the headwinds streaming from global trade tariff wars to shifting geopolitics in the East region. KCB Group remains dedicated to ensuring long-term sustainability and shared value for all stakeholders,” said KCB Group Chairman Dr. Joseph Kinyua.

Latest Developments

KCB Group PLC is at the tail end of completing the sale of National Bank of Kenya Limited (NBK) to Access Bank PLC (Access Bank). In April, the Group received regulatory approval from the Central Bank of Kenya (CBK) to progress the KCB also received a nod from the Cabinet Secretary for the National Treasury and Economic Planning, 2025, approving the transfer of certain assets and liabilities of NBK to KCB Bank Kenya Limited pursuant to section 9 of the Banking Act.

In March, KCB Group PLC and Riverbank Solutions Limited signed a binding agreement that will see KCB acquire up to 75 percent shareholding in the financial technology firm, to strengthen KCB Group’s distribution network across the region. The successful completion of the transaction is subject to conditions that are customary for transactions of this nature, including receipt of regulatory approvals from, amongst others, the Central Bank of Kenya. The deal will boost the Group’s digital capabilities by bringing on board Riverbank’s footprint in banking agency, social payments, and business Riverbank has a presence in Kenya, Uganda, and Rwanda. The acquisition will see KCB tap into Riverbank’s capabilities in payment ecosystems and non-banking offerings, including capability building, networks, and marketplace solutions.

In February, British International Investment (BII), the UK’s development finance institution and impact investor, extended a $100 million Tier 2 capital facility to KCB Bank Kenya to increase its lending capacity to climate-related projects and women-led SMEs. The funding will strengthen KCB Bank’s balance sheet and fund local companies scaling innovative climate technologies, including Renewable energy, green mobility, and firms creating sustainable value chains in the agriculture sector.

KCB Group has signed up to the Pan-African Payment and Settlement System (PAPSS), reinforcing its commitment to enhancing cross-border trade and financial integration across the As the first bank in East Africa to integrate PAPSS into its systems, KCB customers will now be able to enjoy faster settlement times, reduced costs associated with currency conversion, and increased access to new markets across Africa. PAPSS is a centralized financial market Infrastructure developed by the African Export-Import Bank (Afreximbank) to facilitate cross-border payments and trade transactions, reducing both costs and processing times.

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