KCB Group (KCB) Q4 2024 earnings summary

Executive summary

• Profit after tax rose 65% to Ksh 61.8B in FY 2024, driven by revenue growth and improved efficiencies across all businesses.

• Revenue increased 24% year-over-year, supported by interest income from loans, government securities, and non-funded income from trade finance, digital channels, and forex.

• Subsidiaries outside Kenya contributed 30% of Group net profit and 34.9% of total assets, with notable growth in Uganda and strong performance at KCB Investment Bank and Asset Management.

• The Group maintained a diversified business model, serving 33M customers across seven countries.

• Strategic focus on technology, customer-centric solutions, and sustainability underpins ongoing transformation.

Financial highlights

• Total assets declined 10% to Ksh 1.96T, mainly due to currency appreciation and NBK reclassification; customer deposits reached Ksh 1.4T.

• Net loans and advances fell 9.6% to Ksh 990.4B; net interest income rose 28% to Ksh 137.3B.

• Non-funded income contributed 33% of total revenues, boosted by fees, commissions, trade finance, and forex trading.

• Cost-to-income ratio improved to 45.4% from 50.3% in 2023, reflecting efficiency gains.

• Earnings per share reached Ksh 18.70; total dividend of Ksh 3.00 per share proposed, amounting to Ksh 9.6B.

Outlook and guidance

• FY 2025 guidance targets NPL ratio of 14–16%, cost/income ratio of 43–45%, and ROE of 22–24%.

• Deposit and loan growth expected at 1–3% and 9–11% respectively, excluding FX and NBK effects.

• Focus remains on NPL resolution, digital leadership, and sustainable returns.

• Optimism for increased economic activity in 2025, supported by resilient service sectors, agriculture, and improved private sector credit growth.

• Continued focus on capital preservation, cost containment, and embedding ESG priorities for long-term sustainability.