KCB Group Profit Hits KShs 68.4 Billion as Loan Book Expands

KCB Group PLC has reported a profit after tax of KShs 68.4 billion for the full year ending December 2025, marking an 11 percent growth compared to the previous year.

The growth was supported by an expanded loan book that generated higher income across key business segments, alongside sustained cost management across the Group.

On the back of the strong performance, the board has proposed a final dividend of KShs 3 per share, subject to shareholder approval. This comes in addition to an interim dividend of KShs 4 per share paid in November 2025, bringing the total dividend payout for the year to KShs 7 per share, equivalent to KShs 22 billion.

The Group maintained a strong balance sheet during the period, with total assets rising by 9.3 percent to KShs 2.15 trillion, despite the divestment from National Bank of Kenya.

Customer loans increased by 15 percent to KShs 1.59 trillion, while interest-earning assets grew by 13.8 percent to KShs 1.84 trillion year-on-year.

Total revenue rose to KShs 214 billion from KShs 204 billion recorded the previous year, driven largely by higher net interest income as the Group expanded support to households, businesses, and the public sector.

Non-funded income accounted for 31 percent of total revenues, boosted by continued investment in digital banking services.

Speaking during the announcement of the results, Paul Russo, CEO of KCB Group PLC, said the performance demonstrated the strength of the bank’s regional footprint.

“Our 2025 performance reflects the strength of the KCB franchise, the resilience of our regional footprint, and the continued trust that customers place in us. Despite a challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our commitment to sector-focused lending that supports economic transformation across the region,” he said.

Regional Growth Drives Performance

The Group continued to benefit from its regional diversification strategy, with subsidiaries outside Kenya contributing 30.7 percent of profit before tax and 30.5 percent of the Group balance sheet.

Three non-banking subsidiaries also posted strong performance:

• KCB Bancassurance Intermediary – KShs 1.14 billion PBT (29% growth)

• KCB Investment Bank – KShs 348 million PBT (31% growth)

• KCB Asset Management – KShs 160 million PBT (54% growth)

The Group’s cost management strategy saw the cost-to-income ratio decline to 42.5 percent from 45.4 percent, while operating expenses fell 2.5 percent year-on-year.

Balance Sheet and Asset Quality

Gross loans and advances rose 16.2 percent to KShs 1.25 trillion, driven by growth across key sectors of the economy.

Customer deposits also increased 15 percent to KShs 1.59 trillion, reflecting a stable deposit base across markets.

Asset quality improved during the period, with the Non-Performing Loan (NPL) ratio declining to 16.9 percent from 19.2 percent, supported by aggressive loan recovery efforts and the separation of National Bank of Kenya. Gross NPLs dropped to KShs 211.8 billion from KShs 225.7 billion.

The Group maintained strong capital buffers, with core capital at 18.4 percent of risk-weighted assets, well above the regulatory minimum of 10.5 percent. Total capital stood at 22.1 percent against a required 14.5 percent, while the liquidity ratio was 50.8 percent, significantly above the 20 percent regulatory threshold.

Outlook

According to Joseph Kinyua, Chairman of KCB Group PLC, the bank remains optimistic about growth prospects despite global uncertainties.

“Looking ahead, we remain optimistic about business activity and economic growth across our markets. The board remains committed to strong governance and strategic oversight to ensure KCB continues delivering long-term value while supporting economic transformation across East Africa,” he said.