NAIROBI, Kenya, May 20 – KCB Group posted a pre-tax profit of Sh24.4 billion for the first quarter ended March 2026, marking a 15.3 percent increase from Sh21.2 billion recorded during the same period last year.
The lender attributed the growth to higher operating income, strong subsidiary performance and increased customer deposits despite a challenging business environment.
Total operating income rose by 8.5 percent to Sh53.6 billion, supported mainly by growth in interest-earning assets.
However, KCB said continued interest rate cuts across regional markets reduced asset yields and pressured net interest margins.
The Group’s balance sheet expanded by 10.8 percent to Sh2.3 trillion, while customer deposits increased by 15.7 percent to Sh1.7 trillion driven by growth in both retail and corporate customers.
KCB Group Chief Executive Officer Paul Russo said the bank’s performance reflected disciplined execution and continued investment in digital banking and regional expansion.
“Despite the challenging operating environment, we delivered solid growth driven by disciplined execution and continued investment in digital innovation,” Russo said.
The bank noted that the ongoing Middle East conflict could affect economies through lower credit demand, increased credit risks and reduced remittance inflows.
Non-funded income rose by 8.3 percent to Sh17 billion, supported by growth in digital lending and foreign exchange trading income.
KCB also reported improved asset quality, with the non-performing loan ratio declining to 16.6 percent from 19.3 percent last year due to loan recovery efforts and growth in the loan book.
Gross non-performing loans fell to Sh217.8 billion from Sh233.3 billion.
The Group set aside Sh4.9 billion for possible loan losses as part of its risk management measures.
Gross loans increased to Sh1.32 trillion from Sh1.21 trillion recorded a year earlier.
KCB said subsidiaries outside KCB Bank Kenya contributed nearly 30 percent of total group earnings, while non-banking units including bancassurance, investment banking and asset management remained profitable.
Shareholder returns also improved, with return on equity rising to 21.5 percent while earnings per share increased to Sh22.18 from Sh20.03.
KCB Group Chairman Joseph Kinyua said the results reflected the strength of the bank’s regional business model and long-term strategy.
He added that the lender remained focused on supporting regional trade, financial inclusion and economic growth despite global uncertainties.
