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KCB Group net profit grows 3.4pc to Sh46bn
Kenya Commercial Bank (KCB) Kenya Group CEO Paul Russo makes his remarks during the banks Half Year 2025 Financial Results announcement on August 13, 2025 held at Radission Blu Hotel.
Photo credit: Francis Nderitu | Nation Media Group
KCB net profit for nine months of trading ended September grew 3.4 percent to Sh46.02 billion, with the growth trailing rivals like Equity and Cooperative Bank.
The net earnings grew from Sh44.5 billion posted in a similar period a year earlier and came on the back of net interest income—which is mainly earned from loans— rising 12.4 percent to Sh104.34 billion from Sh92.8 billion.
The profit slowdown is linked to a decline in non-interest income and the absence of earnings from National Bank of Kenya (NBK)—a subsidiary KCB sold on May 30 this year to Nigeria’s Access Bank.
“Despite a tough operating environment in all our markets, we have delivered a strong performance showing the resilience of the Group. We continue to execute our business strategy that is anchored on ‘Transforming Today Together’ and build an agile business that is targeted at transforming the lives of our customers and delivering value for our shareholders and all other stakeholders,” said Paul Russo, chief executive officer at KCB Group.
Non- interest income fell by 10.1 percent to Sh45.09 billion, mainly on the back of foreign exchange trading income dropping 40.1 percent, to Sh8.24 billion from Sh13.76 billion.
The lender said digital channels helped ring-fence non-funded income which came under pressure from reduced foreign exchange earnings and decline in fees and commission from Democratic Republic of Congo's subsidiary due to closure of branches in the eastern part of the country.
The review period saw KCB’s operating expenses rise 2.1 percent to Sh87.35 billion.
The marginal rise in expenses was on the back of staff costs rising by 7.3 percent to Sh31.49 billion and the provisioning for loan losses increasing by 2.6 percent to Sh18.25 billion.
Group non-performing loans (NPLs) ratio improved to 17.8 percent from 18.5 percent during the review period, when the stock of gross loans un-serviced for at least three months fell to Sh215.3 billion from Sh225.69 billion.
KCB linked the improved NPL ratio on loan recoveries and the sale of NBK to Nigeria’s Access Bank Group in a deal valued at about $106.9 million (Sh13.81 billion). Subsidiaries contributed 32.4 percent of the net profit during the period under review, down from 36.6 percent in the previous year.
The reduced share of subsidiaries’ contribution in net earnings came on the back of net profit from KCB Bank Kenya rising by 6 percent to Sh33.79 billion from Sh31.75 billion.
The most profitable business outside Kenya, TMB, saw its net profit fell 1 percent to Sh7.62 billion. Rwanda’s BPR posted a 16 percent rise in net earnings to Sh2.77 billion, while the Tanzanian unit posted a 15 percent rise to Sh2.35 billion. KCB Uganda posted a four percent rise in net profit to Sh1.37 billion.
The group’s Sh46.02 billion net profit means it is trailing its closest rival Equity Group, which posted a 32.6 percent in net earnings to Sh52.1 billion from Sh39.2 billion.
However, KCB Group chairman Joseph Kinyua said the lender is optimistic that “we will close the year strong”.
“The group is well positioned to navigate the impacts in the operating environment to deliver the best outcome for all our stakeholders,”he said.
