KCB Group reported profit after tax of KES 16.53 billion for the first quarter of 2025, marginally higher than the KES 16.48 billion recorded a year earlier, the Kenyan banking group said on 21 May 2025, as growth in net interest income offset a decline in non-funded income.
Total revenue rose 2% year on year to KES 49.4 billion. The group's return on equity for the period was 23.3%.
Chief executive Paul Russo said: "It is notable that we were able to match 2024 quarter one performance, which was impressive by all standards."
NET INTEREST INCOME RISES 9%
Net interest income increased 9% to KES 33.7 billion, while non-funded income fell 10% to KES 15.7 billion. Operating costs grew 7.8% to KES 22.7 billion, driven largely by workforce-related expenses and budgeted investment in technology, lifting the cost-to-income ratio to 45.8% from 43.3% a year earlier.
Provisions for expected credit losses declined 11.3%, which the group attributed to closer monitoring of accounts at risk of turning non-performing, stronger collateral positions and the rehabilitation of key non-performing exposures across its subsidiaries. Gross non-performing loans stood at KES 233 billion and the NPL ratio rose to 19.3% from 18.2%.
BALANCE SHEET PASSES KES 2 TRILLION
Total assets reached KES 2.03 trillion, up from KES 1.99 trillion. Net loans and advances rose 9% to KES 1.02 trillion and customer deposits stood at about KES 1.4 trillion. Equity attributable to shareholders increased 28.4% to KES 297.1 billion. The group's core capital ratio was 16.7% and its total capital ratio 19.7%, above the regulatory minimums of 10.5% and 14.5% respectively.