Subsidiaries (excluding KCB) share of profit stood at 30.3pc with all regional units save Uganda and Rwanda posting double digit growth in profitKCB group’s net profit for the year ended December 31 rose 65 percent to Ksh61.8 billion ($479.06 million) lifted by accelerated growth in revenues from regional investments, coupled with increased income on customer loans, government securities, forex trading and banking transactions leading to the resumption of dividend payout that had been frozen in 2023 to build capital buffers.

Audited financial statements show the group’s regional subsidiaries (excluding KCB Kenya) share of profit stood at 30.3 percent, with all the regional units save Uganda and Rwanda posting double digit growth in profit during the period under review.“The strong performance illustrates our resolve over the past three years to build an organisation for the future that is anchored on delivering value for our customers, shareholders and all stakeholders,” the group’s chief executive Paul Russo told an investor briefing in Nairobi last week.

The group’s net profit rose to Ksh61.8 billion ($479.06 million from Ksh37.5 billion ($290.69 million) a year earlier, with subsidiaries outside of KCB Kenya contributing 30.3 percent of the group’s net profit, though down from 35.1 percent in 2023 on strong growth in KCB Kenya.

The Democratic Republic of Congo (DRC)’s subsidiary —Trust Merchant Bank (TMB)—posted a 28 percent growth in net profit during the period followed by Burundi (23 percent) and Tanzania (20 percent)However, KCB’s net earnings from the Rwandan and Ugandan operations declined by three percent and one percent respectively.

The overall net profit from subsidiaries outside of KCB Bank Kenya grew by 42 percent to Ksh19.6 billion ($151.03 million), even though KCB Kenya reported the highest growth in net profit at 77 percent during the year.

Following improved performance the group’s board of directors has recommended a final dividend payout of Ksh1.5($0.01) per share subject to shareholder approval bringing the total pay for the full year to Ksh3 ($0.02) per share amounting to Ksh9.6 billion ($74.41 million) after an interim dividend payout of Ksh1.5($0.01) per share in September 2024.

KCB, the largest lender in the region by assets (Ksh2 trillion, $15.5 billion) had posted four consecutive quarters of declining profits that culminated in the lender skipping dividend payment for the year 2023, first time KCB shareholders missed on dividends payment in 21 years.

Mr Russo who was appointed the group’s chief executive in May 2022 termed the group’s drop in profitability in 2023 as reflection of the ‘cleaning’ up exercise the lender had undertaken since he took up the reins of the region’s largest bank.

Read: How KCB reclaimed position of East Africa’s most profitable bankThe group’s net profit increased by 65 percent to Ksh61.8 billion ($479.06 million) in 2024 from Ksh37.5 billion ($290.69 million) in 2023 supported by growth in revenues from regional subsidiaries and improved efficiencies across all businesses.“We are excited about the strong profits witnessed across all entities. We are optimistic that there will be a pick up in economic activity this year across markets, supported by resilience of key service sectors and agriculture, expected recovery in growth of credit to the private sector and improved exports,” said Joseph Kinyua, the group’s chairman.“We are continually ring-fencing our business by preserving capital and containing costs for long-term sustainability.”The group’s total income grew by 24 percent to Ksh204.9 billion ($1.58 billion) from Ksh165.2 billion ($1.28 billion) a year earlier driven by interest income from customer loans, government securities and placements coupled with non-funded interest income growth from trade finance, digital channels and forex income.

Net interest income grew by 28 percent to Ksh137.34 billion ($1.06 billion) from Ksh107.33 billion ($832.01 million) driven by increase in earning assets and yields.

Non-funded income increased by 16.61 percent to Ksh67.52 billion ($523.41 million) from Ksh57.9 billion ($448.83 million) boosted by fees and commissions from transactions and foreign exchange trading income. Non-funded income’s contribution to the group’s revenues stood at 33 percent.

KCB group has operations in Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, the Democratic Republic of Congo (DRC) and a representative office in Ethiopia.

According to the financial statements the group’s proportion of assets in subsidiaries outside of KCB Kenya increased to 34.9 percent in 2024 from 34.6 percent in 2023 and contribution to net loans from regional units dropped marginally impacted by appreciation of Kenya shilling and a steady loan book in KCB Kenya.

The group’s customer deposits dropped by 18 percent to Ksh1.4 trillion ($10.85 billion) largely due to appreciation of Kenya shilling, ceding market share for G2G and de-consolidation of NBK while the proportion of customer deposits in subsidiaries outside of KCB Bank Kenya grew to 34.3 percent from 33.8 percent in 2023.

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