KCB Group’s net profit increased by 65% to Ksh61.8 billion ($479.06 million) in 2024, supported by strong growth in regional revenues and improved operational efficiencies. The group resumed dividend payments after a year of capital preservation. Performance varied across subsidiaries, leading to an overall increase in profits, alongside a rise in non-funded income and net interest income.
KCB Group’s net profit surged by 65% to Ksh61.8 billion ($479.06 million) for the year ending December 31, attributable to significant revenue growth from regional investments. Increased income from customer loans, government securities, and forex trading contributed to this performance, allowing the bank to resume dividend payments that were suspended in 2023 to strengthen capital buffers.
The group’s audited financial statements revealed a 30.3% profit share from regional subsidiaries, with all units, except Uganda and Rwanda, achieving double-digit profit growth. KCB’s CEO, Paul Russo, highlighted the strong performance as evidence of the company’s commitment to delivering long-term value to shareholders and stakeholders alike.
The overall net profit from subsidiaries outside KCB Kenya climbed by 42% to Ksh19.6 billion ($151.03 million), while KCB Kenya alone recorded a net profit increase of 77%. The company plans to pay a final dividend of Ksh1.5 ($0.01) per share, pending shareholder approval, totaling Ksh3 ($0.02) per share for the year. This marked a significant recovery for KCB, which had not paid dividends in 2023 for the first time in over two decades.
Regional performance varied, with derivatives like Trust Merchant Bank in the DRC seeing a 28% profit rise, while returns from Rwandan and Ugandan operations dipped. The overall company income rose by 24% to Ksh204.9 billion ($1.58 billion), driven mainly by interest income. Net interest income grew by 28%, and non-funded income saw a 16.61% rise, largely from fees and commissions and foreign exchange transactions.
The group’s asset proportion from subsidiaries, excluding KCB Kenya, increased to 34.9% in 2024. However, customer deposits decreased by 18% to Ksh1.4 trillion ($10.85 billion), partly due to shilling appreciation and market share losses. Nonetheless, the contribution of customer deposits in regional subsidiaries rose, reflecting an expanding regional footprint.
KCB Group demonstrated robust financial performance in 2024 with a net profit rise of 65% driven by strong revenues from regional subsidiaries, despite some declines in specific markets. The bank’s ability to resume dividend payments signals a recovery after a challenging 2023. Strategic focus on capital preservation and operational efficiency positions the group for sustained growth amid evolving market dynamics.
Original Source: www.zawya.com
