KCB Group Posts Sh 16.53 Billion in Profits for Q1 2025
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KCB Group PLC reported a profit after tax of KSh 16.53 billion for the first quarter ended March 2025, compared to KSh 16.48 billion in the same period last year.
Total revenue increased by 2% to KSh 49.4 billion, while the Group’s total assets rose to KSh 2.03 trillion from KSh 1.99 trillion.
The Group’s customer deposits stood at KSh 1.4 trillion, while customer loans and advances closed the quarter at KSh 1.02 trillion. Profit before tax contributions from subsidiaries outside Kenya accounted for 32% of total earnings.
Read: How to Streamline Your Business Payments with KCB iBank
According to Group CEO Paul Russo, the performance was in line with internal expectations. “It is notable that we were able to match 2024 quarter one performance, which was impressive by all standards. The Group was resilient, supported by new business lines, deepening of digital channels and innovative customer value propositions.”
“As we steer the remainder of the year, our focus is on leveraging the Group’s scale, capabilities, people and partners, to deepen relationships and financial inclusion. We will continue to harness technology to enhance banking services and drive relevant products and services that contribute to economic growth, sustainability, and shareholder value.” he added.
Operating expenses increased by 7.8% to KSh 22.7 billion, mainly due to employee-related costs and investment in technology. Provisions for expected credit losses declined by 11.3%, with the Group citing changes in credit monitoring and collateral management.
Gross non-performing loans stood at KSh 233 billion, and the NPL ratio was 19.3%. Return on equity was 23.3%, and total equity attributable to shareholders rose from KSh 231.5 billion to KSh 297.1 billion, a 28.4% increase.
The Group’s core capital to risk-weighted assets ratio stood at 16.7%, while the total capital adequacy ratio was 19.7%, above the statutory minimums of 10.5% and 14.5%, respectively. All subsidiaries except National Bank of Kenya (NBK) met their local capital adequacy requirements.
KCB Group Chairman Dr. Joseph Kinyua noted that the current environment presents various external risks.
“The environment is expected to be even tougher this year with all the headwinds streaming from global trade tariff wars to shifting geopolitics in the East region. KCB Group remains dedicated to ensuring long-term sustainability and shared value for all stakeholders.”
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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