KCB Group H1 2025: Profit Up 8%, Assets Hit KES 1.97T as Board Proposes KES 13B Payout

KCB Group posted an 8 percent rise in profit after tax to KES 32.3 billion for the first half of 2025. The Board recommended an interim dividend of KES 2.00 per share and a special dividend of KES 2.00 per share that the bank ties to the sale of National Bank of Kenya. The proposed payout totals KES 13 billion, which KCB describes as its largest interim payment and first ever special dividend. Total assets closed the period at KES 1.97 trillion.

What drove the half year

Group revenue grew 4.3 percent, supported by higher net interest income which rose to KES 69.1 billion as loan yields and volumes improved. Non-funded income held at KES 29.5 billion, with management noting lower foreign exchange income during the period. Transaction migration continued, with 99 percent of transactions by number executed on non-branch channels.

Outside Kenya, regional subsidiaries remained important to earnings and scale. They contributed 33.4 percent of Group profit before tax and 31.4 percent of the balance sheet. Non-banking units, namely KCB Investment Bank, KCB Asset Management and KCB Bancassurance Intermediary, raised their combined profit before tax contribution to 2.1 percent from 1.8 percent a year earlier.

Balance sheet, funding and asset quality

Loans stood at KES 1.18 trillion, a 2.8 percent increase year on year, or 12 percent when the NBK impact is excluded. Customer deposits were KES 1.48 trillion, with mobilization offsetting the NBK sale and effects of Uganda’s transition to its own Government to Government oil importation programme.

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Operating expenses rose 2.4 percent to KES 45.4 billion, keeping the cost to income ratio at 46.0 percent. Credit risk costs were higher as the Group increased expected credit loss provisions in line with sector pressures across markets. The non-performing loans ratio eased to 18.7 percent from 19.2 percent in December 2024, with an NPL stock of KES 221.1 billion.

Capital, liquidity and returns

Regulatory buffers remained solid. Core capital to risk-weighted assets was 17.0 percent against a 10.5 percent minimum, and total capital to risk-weighted assets was 19.7 percent against a 14.5 percent minimum. Liquidity was 47.2 percent, slightly above the same period last year. Returns stayed strong, with return on equity at 22.2 percent and return on assets at 3.3 percent. Shareholders’ equity rose 27.3 percent to KES 306.8 billion.

Corporate actions and network

The sale of 100 percent of NBK to Access Bank concluded on May 30, 2025. KCB also opened six branches in high growth locations, including Kamakis, Ayany Kibera, Haile Selassie and Village Market in Kenya, plus Zanzibar in Tanzania and MTN Center Branch under BPR in Rwanda.

On August 11, 2025 the bank rolled out a unified mobile app for Kenya that enables instant self-onboarding. The platform is built on AI, data analytics and a mini-app ecosystem designed for scale, agility and inclusivity.

Sustainability notes

KCB issued KES 26.9 billion in green loans in Kenya and Tanzania during H1 2025. The Group also screened KES 133.2 billion in facilities under environmental and social due diligence across Kenya, Rwanda, Tanzania and Uganda.

Management view and outlook

The Chairman described a resilient first half in a mixed operating environment, pointing to continued execution across markets and disciplined capital management. Into H2, management flagged opportunities in expanding trade corridors, further digital penetration and regional integration, while keeping a focus on credit quality and cost discipline.