KCB Group has posted a 66.1 percent rise in its full year profit for 2024 to Sh60 billion from Sh36.1 billion a year earlier on higher income, helping it reinstate a final dividend to shareholders at Sh1.50 per share.
This will bring the bank’s total shareholder payout to Sh3 a share, reinstating missing dividends from 2023 when the bank took a hit to its net profit.
The payout is, however, lower than in 2019 when the lender paid its highest total dividend at Sh3.50 per share.
The bank’s total operating income last year rose by 23.9 percent to Sh204.8 billion from Sh165.2 billion in 2023, anchored primarily on higher net interest income.
Net-interest income for the bank rose by 27.9 percent, revealing the lender’s ability to reprice loans higher during the year, which helped offset a 9.6 percent dip in net loans and advances to customers to Sh990.4 billion from Sh1.095 trillion previously.
KCB’s customer deposits costs, however, rose faster than interest income at 32.5 percent to Sh55.4 billion from Sh41.8 billion, mirroring the hit from higher deposit rates amid a fall in customer deposits by 18.4 percent to Sh1.38 trillion from Sh1.69 trillion in 2023.
The bank also grew its non-funded income, albeit at a slower rate of 16.5 percent to Sh67.5 billion from Sh57.9 billion in the prior year on higher foreign exchange trading income.
“The strong performance illustrates our resolve over the past three years to build an organisation for the future that is anchored on delivering value for our customers, shareholders and all stakeholders,” said KCB Group Chief Executive Officer Paul Russo.
“The group strives to be more agile by rethinking our customer-centred value propositions and leveraging group capabilities in the markets we operate in. Our focus is on ensuring we have fit-for-purpose technology that drives seamless, reliable, secure and innovative solutions for our customers.”
KCB managed to mute its costs growth with its non-deposit related expenditure rising by only 5.2 percent to Sh122.8 billion from Sh116.7 billion on lower loan-loss provisions, which fell 11.1 percent to Sh29.9 billion from Sh33.6 billion previously.
The lower provision costs came even as the group’s gross non-performing loans (NPLs) rose by 8.3 percent to Sh225.6 billion from Sh208.2 billion previously.
The lender’s NPL ratio closed 2024 at 19.2 percent, reflecting the tough conditions faced by various sectors from high interest rates and a soft economic environment.
The Sh1.50 per share dividend will be payable to shareholders sitting on the lender’s books as of April 3, 2025.
