KCB Group’s net profit surged by 65% to Ksh61.8 billion for the year ending December 31, driven by growth in regional investments and income enhancements from customer loans and trading. This results in the resumption of dividend payments after a freeze in 2023. Regional subsidiaries contributed 30.3% to total profits, with mixed performance across markets. Total income increased by 24%, supported by substantial growth in both net interest and non-funded income.
KCB Group has reported a remarkable increase in its net profit, rising by 65 percent to Ksh61.8 billion ($479.06 million) for the fiscal year ending December 31. This growth is attributed to heightened revenue from regional investments, increased income from customer loans, and improved performance in forex trading and banking transactions. Additionally, this positive shift allows the bank to resume dividend payments, which had been suspended in 2023 to fortify capital reserves.
Excluding KCB Kenya, the subsidiaries contributed 30.3 percent to the total profit, with the majority demonstrating double-digit growth in profit margins, notably in the Democratic Republic of Congo, Burundi, and Tanzania. However, two markets, Uganda and Rwanda, experienced slight profit declines, showing a need for focused strategies in these regions. The board has proposed a final dividend of Ksh1.5 ($0.01) per share.
Following a challenging previous year, when KCB experienced consecutive quarterly profit reductions and missed dividend payouts for the first time in over two decades, the group’s recent turnaround reflects robust strategic efforts. Group CEO Paul Russo highlighted the organization’s commitment to sustainable growth, and Chairman Joseph Kinyua expressed optimism about future economic recovery and profitability across key sectors.
KCB’s growth trajectory is supported by a 24 percent increase in total income, rising to Ksh204.9 billion ($1.58 billion). This growth was underpinned by a remarkable jump in net interest income, which rose by 28 percent. Non-funded income also saw a significant increase, reaching Ksh67.52 billion ($523.41 million) thanks to fees from transactions and foreign exchange gains. The group maintains operations across several countries, including Kenya, Uganda, Tanzania, Rwanda, and more, in alignment with its expansion objectives.
KCB Group has successfully navigated a significant recovery period, showcasing a 65 percent increase in net profit and the return to dividend payouts after a challenging year. With contributions from regional units, the bank indicates strong financial health and growth potential. CEO Paul Russo and Chairman Joseph Kinyua’s leadership reinforces KCB’s dedication to sustainable financial practices and resilience across its operations. As KCB anticipates upward economic trends, it aims to leverage its robust performance for continued market leadership.
Original Source: www.zawya.com
