NAIROBI, Kenya, Mar 12 – Kenya Commercial Bank (KCB) has reported a 64.9 percent growth in net profit for the full year of 2024, soaring to Sh61.8 billion, up from Sh37.5 billion during the same period in 2023.
The lender says the performance is driven by robust topline growth across all business segments, even amid a challenging operating environment.
The Group’s total revenues rose 24 percent, hitting Sh204.9 billion, bolstered by increased interest income and a strong performance in non-funded income, particularly from foreign exchange trading.
Notably, the group’s total assets closed at Sh1.96 trillion, supported by a solid deposit base and a stable loan portfolio.
Its CEO Paul Russo expressed confidence in the bank’s strategic direction, citing the Group’s commitment to customer-centric innovation and the advancement of technology solutions.
“The strong performance illustrates our resolve over the past 3 years to build an organisation for the future that is anchored on delivering value for our customers, shareholders, and all stakeholders,” he said.
“We are focused on ensuring we have fit-for-purpose technology that delivers seamless, reliable, secure, and innovative solutions.”
Additionally, the bank’s income grew by 24 percent, reaching Sh204.9 billion from Sh165.2 billion, with net interest income up by 28 percent.
Non-funded income accounted for 33 percent of total revenues, boosted by transaction fees, trade finance, and foreign exchange trading.
On the flip side,KCB’s operating costs increased by 11.8 percent to.Sh92.9 billion, largely due to higher staff costs, technology investments, inflationary pressures, and business-driven expenditures.
Despite these challenges, the Group continued to focus on improving asset quality.
Provisions for expected credit losses declined 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 challenging economic conditions across different sectors in the markets where the Group operates.
On the balance sheet side, customer deposits closed at Sh1.4 trillion, and customer loans and advances stood at Sh990.4 billion.
The Group’s total equity attributable to shareholders increased by 20.8 percent to Sh274.9 billion, 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.
