KCB Group has achieved a 65% increase in net profit for 2024, reaching Ksh61.8 billion ($479.06 million), driven by regional investments and improved revenues. The board proposed a total dividend payout of Ksh3 ($0.02) per share. Overall income grew by 24%, supported by robust interest and non-funded income. The group continues to focus on long-term sustainability following a challenging year in 2023.
KCB Group has reported a significant net profit increase of 65 percent for the year ending December 31, 2024, reaching Ksh61.8 billion ($479.06 million). This growth is attributed to enhanced revenues from regional operations, vibrant customer loan income, gains from government securities, and foreign exchange trading, leading to the resumption of dividend payments, which were halted in 2023 to bolster capital reserves.
Notably, the group’s regional subsidiaries contributed 30.3 percent to the profit, with almost all units, apart from those in Uganda and Rwanda, experiencing double-digit profit growth. KCB’s CEO, Mr. Paul Russo, emphasized the organization’s commitment to creating lasting value for stakeholders. Overall, subsidiaries outside of KCB Kenya saw a 42 percent profit increase, totaling Ksh19.6 billion ($151.03 million), although contributions from Rwandan and Ugandan operations decreased slightly.
The board has proposed a final dividend of Ksh1.5 ($0.01) per share, pending shareholder approval, totaling Ksh9.6 billion ($74.41 million) for the fiscal year. This marks a recovery from a challenging 2023, where KCB had experienced four successive quarters of profit decline, resulting in a missed dividend payment for the first time in 21 years. Mr. Russo referred to the previous year’s downturn as part of a necessary ‘cleaning up’ process to ensure long-term growth.
The total income for KCB Group increased by 24 percent to Ksh204.9 billion ($1.58 billion), driven by interest from loans, government securities, and non-funded revenues. Specifically, net interest income surged by 28 percent to Ksh137.34 billion ($1.06 billion). Furthermore, non-funded income rose by 16.61 percent to Ksh67.52 billion ($523.41 million), primarily from transaction fees and foreign exchange trading, contributing to one-third of the overall revenues.
KCB operates in several countries including Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, the DRC, and has a representative office in Ethiopia. The group’s assets in regional subsidiaries slightly increased, while contributions from these units to net loans declined marginally due to currency appreciation and a stable loan portfolio in KCB Kenya. Customer deposits fell by 18 percent to Ksh1.4 trillion ($10.85 billion), attributed to the appreciating Kenyan shilling and market share losses, although the share from subsidiaries increased slightly to 34.3 percent.
In summary, KCB Group’s substantial profit growth and return to dividend payments reflect successful regional investments and operational efficiencies. Despite some challenges in specific markets, the overall financial health of the group is robust, supported by strong interest and non-funded income. The company’s commitment to capital preservation and cost management signals a strategic approach towards sustainable growth amid a recovering economic landscape.
Original Source: www.zawya.com
