KCB Group, the largest bank in Kenya, recorded a 49% increase in profits during the first nine months of 2024, thanks to a boost in its income. The bank reported a profit of KES 45.8 billion ($354 million), up from KES 30.7 billion ($238 million) in the same period the previous year.
The bank’s revenue also grew by 22%, totaling KES 142.9 billion ($1.1 billion). This growth was supported by both lending and non-lending activities, such as foreign exchange earnings and transaction fees.
KCB’s total assets, including cash, loans, investments, and real estate, reached KES 2.0 trillion ($15.4 billion), largely driven by customer deposits amounting to KES 1.5 trillion ($11.5 billion).
Net loans and advances rose to KES 1.1 trillion ($8.5 billion), reflecting an increase in retail sector lending.
This growth in deposits and loans indicates strong customer confidence and effective operations, despite the challenges posed by currency fluctuations affecting foreign-denominated loans, according to a banking executive.
International subsidiaries of KCB contributed 36.6% to profits and 34% to total assets, pointing to a shift towards expanding in regional markets. The performance of Trust Merchant Bank in the Democratic Republic of Congo, which KCB acquired in December 2022, highlights the benefits of geographic diversification, although it also brings exposure to markets with diverse economic and political climates.
Non-performing loans (NPLs) rose to KES 215.3 billion ($1.67 billion), and provisions for NPLs increased by 12.2%. The bank cited challenges in sectors like real estate and manufacturing, and efforts to address bad loans remain ongoing.
Shareholders saw increased returns, with the return on equity rising to 25.6% from 19.6% last year. Shareholder equity grew to KES 249 billion ($1.9 billion). The bank’s capital remains strong, surpassing the regulatory threshold of KES 10 billion. However, one of its subsidiaries, the National Bank of Kenya (NBK), did not meet this standard.
In October 2024, Access Bank received approval from the Competition Authority of Kenya (CAK) to acquire NBK in a transaction valued at approximately $100 million.
