KCB Group Posts KSh24.4 Billion Q1 Profit as Digital Growth and Regional Expansion Drive Strong Performance
By Jeff Kizzilah/Digital Editor
KCB Group Plc has reported a strong first quarter performance for 2026, posting a pre-tax profit of KSh24.4 billion for the period ending March 31, marking a 15.3% increase compared to KSh21.2 billion recorded during the same period last year.
The lender attributed the impressive growth to sustained momentum across its regional subsidiaries, strategic balance sheet management, and diversified revenue streams despite operating in a challenging economic environment.
The Group’s total operating income rose by 8.5% to KSh53.6 billion, driven largely by growth in interest-earning assets, although declining Net Interest Margins continued to weigh on earnings following sustained interest rate cuts by regulators across East Africa.
KCB’s balance sheet expanded by 10.8% to stand at KSh2.3 trillion, supported by increased customer activity and a sharp rise in deposits, which grew by 15.7% to KSh1.7 trillion.
Excluding the impact of National Bank of Kenya (NBK), which the Group divested from in May 2025, KCB recorded an even stronger year-on-year growth of 17% in pre-tax profit and 16% in operating income.
The Group’s subsidiaries continued to play a key role in earnings contribution, accounting for 29.5% of total Group profit before tax and 31.5% of the total balance sheet. Non-banking subsidiaries also maintained steady growth, with KCB Bancassurance posting KSh209 million, KCB Investment Bank recording KSh274 million, and KCB Asset Management contributing KSh64 million in profit before tax.
Speaking on the results, Paul Russo said the Group remained focused on disciplined execution, digital innovation, and financing initiatives aimed at driving economic transformation across the region.
“Despite the challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our unwavering commitment to providing financing which catalyzes economic transformation across the region,” said Russo.
He however warned that the ongoing Middle East conflict continues to pose risks to regional economies through reduced credit demand, increased credit risks, and declining remittance inflows.
KCB also reported improvements in asset quality across its subsidiaries, with the Non-Performing Loan (NPL) ratio dropping significantly from 19.3% to 16.6%. The stock of NPLs reduced to KSh217.8 billion from KSh233.3 billion, supported by aggressive recovery strategies and a 9.1% expansion in the gross loan book.
The Group set aside KSh4.9 billion in provisions to cushion against potential loan losses amid prevailing economic uncertainties.
Total operating costs rose by 7.3% to KSh24.3 billion due to increased workforce expenses, expanded technology investments, and business growth initiatives.
Non-funded income grew by 8.3% to KSh17 billion, supported by higher digital loan disbursements and increased foreign exchange income as the bank continued supporting businesses and households with financing solutions.
KCB’s gross loan book grew from KSh1.21 trillion to KSh1.32 trillion, reflecting sustained lending activity across corporate and retail segments.
The Group also delivered strong shareholder returns, recording a Return on Equity (ROE) of 21.5%, while earnings per share rose from KSh20.03 to KSh22.18.
Total shareholder equity climbed by 18.5% to KSh352.2 billion from KSh297.1 billion recorded during the same period last year.
KCB maintained strong capital and liquidity positions, with all banking subsidiaries remaining compliant with local regulatory requirements. The Group’s liquidity ratio stood at 51.1%, signaling a strong capacity to navigate emerging market risks while capitalizing on future growth opportunities.
Joseph Kinyua said the strong start to the year reflects the effectiveness of the Group’s long-term strategy and resilience across regional markets.
“The Group’s strong start to the year is a clear affirmation of the effectiveness of our long-term strategy, the resilience of our regional businesses, and the discipline with which we continue to execute our priorities,” said Kinyua.
