- The Board has proposed a remaining dividend of $0.012 per share, bringing the overall payout for the yr to $0.023 per share—amounting to $74 million.
- Lender’s steadiness sheet closed the yr at $15.13 billion (KSh1.96 trillion), powered by a robust deposit progress and steady mortgage portfolio.
- Working prices grew by 11.8% to $717 million (KSh92.9 billion), pushed by workers prices, and tech investments.
KCB Group revenue after tax for the total yr 2024 grew by 64.8 per cent to $477 million (KSh61.8 billion), attributable to robust enlargement throughout all its companies subsidiaries within the East African market.
This efficiency was a rise from the $289.5 million (KSh37.5 billion) which the financial institution that has presence in Kenya, Uganda, Tanzania, Rwanda, Burundi, the Democratic Republic of Congo (DRC) and South Sudan reported throughout an identical interval in 2023.
“The robust efficiency illustrates our resolve over the previous 3 years to construct an organisation for the longer term that’s anchored on delivering worth for our clients, shareholders and all stakeholders,” famous KCB Group CEO Paul Russo throughout the launch of the financial institution outcomes on Wednesday.
The Nairobi Securities Trade-listed Group’s steadiness sheet closed the yr at $15.13 billion (KSh1.96 trillion), powered by a robust deposit progress and steady mortgage portfolio, regardless of the robust working atmosphere.
Whole revenues elevated 24 per cent to $1.6 billion (KSh204.9 billion) on larger curiosity earnings and non-funded earnings arising from overseas change buying and selling earnings.
“Our focus is on making certain now we have fit-for-purpose expertise that delivers seamless, dependable, safe, and revolutionary options for our clients,” added.
He added, “Consistent with, our 2024–2026 Technique dubbed Reworking Immediately Collectively, we stay dedicated to the precept of Sustainability and Shared Worth— unlocking influence in a significant and socially accountable means.”
KCB Group 2024 key monetary efficiency highlights
Based on the lender, its enterprise diversification mannequin continued to ship robust advantages, with the contribution by subsidiaries (excluding KCB Financial institution Kenya) to the overall belongings standing at 34.9 per cent, whereas the share of revenue after tax closed the yr at 30.3 per cent.
What’s extra, the overall earnings elevated by 24 per cent to $1.6 billion (KSh204.9 billion) from KSh165.2 billion that was reported in 2023, with web curiosity earnings posting 28 p.c progress. Throughout the yr, non-funded earnings contributed 33 per cent of the overall revenues, boosted by charges and commissions from transactions, commerce finance and foreign exchange.
Working prices grew by 11.8 per cent to $717 million (KSh92.9 billion), impacted by workers prices, technological investments, inflationary pressures and business-driven expenditure.
The Group continued to prioritize efforts to enhance asset high quality with provisions for anticipated credit score losses declining by 11 per cent pushed by the strengthening of the Kenya Shilling, profitable rehabilitation of key NPL exposures and an aggressive restoration technique, the lender mentioned.
The Group’s inventory of gross NPLs closed the interval at $1.7 billion (KSh225.7 billion). The NPL ratio stood at 19.2 per cent, reflecting the arduous financial situations in numerous sectors throughout the markets.
Learn additionally: Africa’s commerce finance will get $50M shot within the arm as UK’s GHIB and BII be a part of forces
Buyer loans and advances
On the steadiness sheet facet, buyer deposits closed the yr at $10.8 billion (KSh1.4 trillion) and regardless of strain attributable to the appreciation of the Kenyan Shilling towards the US greenback, buyer loans and advances stood at $7.64 billion (KSh990.4 billion) as of December thirty first, 2024.
Return on fairness improved to 24.6 per cent up from 17.8 per cent final yr. On the similar time, whole fairness attributable to Group shareholders elevated by 20.8 per cent from $1.76 billion (KSh227.5 billion) to $2.1 billion (KSh274.9 billion), highlighting the sustained worth that the lender continued to ship for shareholders.
The Board has proposed a remaining dividend payout of $0.012 (KSh1.50) per share, topic to shareholder approval. That is along with an interim payout of KSh1.50 per share which was paid out in September 2024. This brings the overall dividend payout for the yr to $0.023 (KSh3.00) per share, amounting to a complete of $74 million (KSh9.6 billion) for the yr 2024.
“We’re excited in regards to the robust earnings witnessed throughout all entities. We’re optimistic that there might be a pickup in financial exercise this yr throughout markets, supported by resilience of key service sectors and agriculture, anticipated restoration in progress of credit score to the non-public sector, and improved exports. We’re frequently ring-fencing our enterprise by preserving capital and containing prices for long-term sustainability,” mentioned KCB Group Chairman Dr. Joseph Kinyua.
“Sustainability and embedding our ESG priorities will stay key to our technique in 2025. Leveraging the energy of our Basis and dealing with the event companions, we’ll proceed to combine precedence SDGs throughout the enterprise with deal with social influence, local weather motion, and nature danger administration” he added.
Lending to climate-related initiatives
Final month, KCB Financial institution Kenya acquired a $100 million tier 2 capital facility from the British Worldwide Funding (BII), the UK’s growth finance establishment and influence investor to extend its lending capability to climate-related initiatives and women-led small and medium-sized enterprises (SMEs).
The funding will strengthen KCB Financial institution’s steadiness sheet and fund native corporations scaling revolutionary local weather applied sciences, together with renewable power, inexperienced mobility, and companies creating sustainable worth chains within the agriculture sector.
Final month, KCB Group signed as much as the Pan-African Fee and Settlement System (PAPSS), reinforcing its dedication to enhancing cross-border commerce and monetary integration throughout the continent. As the primary financial institution in East Africa to combine PAPSS into its techniques, KCB clients will now be capable of get pleasure from quicker settlement occasions, lowered prices related to forex conversion, and elevated entry to new markets throughout Africa.
PAPSS is a centralized monetary market Infrastructure developed by the African Export Import Financial institution (Afreximbank) to facilitate cross-border funds and commerce transactions, lowering each prices and processing occasions.
(KSh1=US$0.0077)
