KCB Posts Record KSh 68.35Bn Profit, Dividends Scale to KSh 7 Per Share

KCB Group reported a record net profit of KSh 68.35 billion for the 2025 financial year, up 10.6 per cent from KSh 61.77 billion in 2024, enabling the bank to double its dividend payout to KSh 7 per share.

The lender, the largest bank in East and Central Africa by assets, said the dividend represents a total shareholder payout of about KSh 22.5 billion, also the highest in its history.

Profit growth came despite a slight decline in interest income as lending rates eased across the bank’s regional markets.

Total interest income fell 1.7 per cent to KSh 209.73 billion, while total operating income rose 4.3 per cent to KSh 213.78 billion.

The main driver of profitability was a sharp reduction in funding costs following monetary policy easing by the Central Bank of Kenya.

Interest expenses dropped 18.9 per cent to KSh 61.70 billion as the bank benefited from a lower cost of deposits.

That decline lifted net interest income by 7.8 per cent to KSh 148.02 billion and widened the group’s net interest margin to 7.7 per cent.

KCB’s deposit structure gave it an advantage in the lower-rate environment.

Demand deposits, which adjust quickly when interest rates fall, account for about 61 per cent of the bank’s KSh 1.59 trillion deposit base, allowing funding costs to decline faster than those of some competitors.

The bank’s loan book continued to expand strongly, with net loans crossing the KSh 1 trillion mark for the first time to reach KSh 1.15 trillion. Customer deposits grew 15.2 per cent to KSh 1.59 trillion, while total assets rose to KSh 2.15 trillion.

However, the lender continued to set aside more funds to cushion against potential loan defaults. Loan loss provisions increased 8.2 per cent to KSh 32.42 billion.

Asset quality showed some improvement during the year, with the gross non-performing loan ratio falling to 16.9 per cent from 19.2 per cent in 2024, supported by recoveries and the removal of the loan book of National Bank of Kenya following its sale to Access Bank in May 2025.

Regional subsidiaries remained an important source of earnings. Operations outside Kenya contributed about 31 per cent of the group’s pre-tax profit, reflecting the bank’s growing footprint across East and Central Africa, including the Democratic Republic of Congo, Uganda, Tanzania, Rwanda, Burundi and South Sudan.

Digital banking also continued to expand rapidly. Mobile loan disbursements rose 30 per cent to KSh 544 billion, with nearly all transactions now processed through digital channels rather than physical branches.

Looking ahead, KCB expects loan growth of between 10 per cent and 11 per cent in 2026 and aims to bring the non-performing loan ratio down to between 14 per cent and 16 per cent as credit quality improves.

The bank is also poised for a return on equity of between 20 per cent and 22 per cent as it continues expanding across the region.

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