KCB Group Records KShs. 68.4 Billion in Net Profit for the Full Year 2025, Raises Dividend Payout to KShs.22 Billion

The KCB Group Plc has reported a strong financial performance for the year ended December 2025, posting a net profit of Sh68.4 billion as the lender continued to expand its regional operations and deepen digital banking services.

According to the bank’s latest financial results, the profit after tax grew by 11 percent compared to the previous year, supported by growth in lending, higher customer transactions on digital platforms and disciplined cost management across the Group.

On the back of the improved performance, the bank’s board has proposed a final dividend payout of Sh3 per share, subject to shareholder approval. This is in addition to an interim dividend of Sh4 per share that was paid out in November 2025, bringing the total dividend payout for the year to Sh7 per share. The dividend payout amounts to approximately Sh22 billion returned to shareholders.

The Group also reported steady growth in its balance sheet, with total assets rising by 9.3 percent to close at Sh2.15 trillion during the period under review. The growth came despite the bank’s divestment from National Bank of Kenya, reflecting the lender’s resilience and diversification strategy across multiple markets.

Customer loans increased significantly during the year, growing by 15 percent to reach Sh1.59 trillion. The growth in lending supported interest-earning assets, which rose by 13.8 percent year-on-year to Sh1.84 trillion.

Total revenues for the Group rose to Sh214 billion from Sh204 billion recorded in the previous year. The increase was mainly driven by higher net interest income as the bank expanded lending to households, businesses and the public sector across the region. Non-funded income accounted for 31 percent of the total revenues, largely boosted by investments in digital banking platforms and payment services.

Speaking during the release of the financial results, KCB Group Chief Executive Officer Paul Russo said the performance reflects the strength of the bank’s regional footprint and continued customer trust.

“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,” Russo said. “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.”

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

Among the non-banking subsidiaries, KCB Bancassurance Intermediary recorded profit before tax of Sh1.14 billion, representing a 29 percent growth. KCB Investment Bank posted Sh348 million in profit before tax, reflecting a 31 percent increase, while KCB Asset Management delivered Sh160 million, representing a 54 percent growth.

The bank also improved its operational efficiency during the year. Its cost-to-income ratio dropped to 42.5 percent from 45.4 percent recorded in the previous year, while overall operating expenses declined by 2.5 percent year-on-year.

On the balance sheet side, gross loans and advances rose by 16.2 percent to Sh1.25 trillion, driven by new lending across key sectors of the economy including trade, agriculture and manufacturing.

The Group maintained a stable deposit base across all markets, with the deposit book closing at Sh1.59 trillion, marking a 15 percent increase compared to the previous year.

Asset quality also showed improvement during the period. The non-performing loans ratio declined to 16.9 percent from 19.2 percent recorded in the previous year, supported by recovery initiatives and restructuring efforts. The stock of gross non-performing loans stood at Sh211.8 billion, down from Sh225.7 billion.

KCB also maintained strong capital and liquidity positions during the year. The Group’s core capital to total risk-weighted assets ratio stood at 18.4 percent, well above the statutory minimum requirement of 10.5 percent. Meanwhile, the total capital ratio stood at 22.1 percent compared to the regulatory minimum of 14.5 percent.

The bank’s liquidity ratio was reported at 50.8 percent, significantly higher than the regulatory minimum of 20 percent.

On shareholder returns, return on equity stood at 22.5 percent while return on assets was recorded at 3.3 percent. Shareholder funds closed the year at Sh331 billion.

Looking ahead, KCB Group Chairman Joseph Kinyua expressed optimism about the Group’s future growth prospects across the region.

Kinyua noted that the bank remains focused on strengthening governance, managing global economic uncertainties and supporting economic growth across East Africa.

“We are optimistic about sustained business activity and economic growth prospects across the markets where we operate,” he said, adding that the Group will continue to focus on long-term value creation while supporting economic transformation in the region.