KCB Group PLC has posted a profit after tax of KSh16.53 billion in the first quarter of the year ending March 2025, compared to KSh16.48 billion reported in a similar period last year, with notable growth in key financial metrics.
In a statement, KCB said the total revenues rose 2% to KSh49.4 billion, while the Group’s balance sheet closed the period at KSh2.03 trillion, from KSh1.99 trillion on the back of a stable loan portfolio.
According to KCB, 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.
“The quarter’s performance reflects a strong push by teams across the business. It is notable that we were able to match 2024 quarter one performance, which was impressive by all standards. The Group was resilient, supported by new business lines, the 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,” said Group Chief Executive Officer, Paul Russo.
“As we steer the remainder of the year, our focus is on leveraging the Group’s scale, capabilities, people, and partners to deepen relationships and financial inclusion. We will continue to harness technology to enhance banking services and drive relevant products and services that contribute to economic growth, sustainability, and shareholder value”, he added.
The Bank noted that its 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 19.3%, 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.
