KCB Group net profit rose 10.7 per cent to Sh17.81 billion in the first three months of the year on the back of increased interest and non-interest income.
The net profit for the quarter ended March 2026 was a rise from Sh16.09 billion posted in the preceding similar period last year, when the group still had National Bank of Kenya (NBK) as a subsidiary.
KCB sold NBK in May last year to Nigeria’s Access Bank Group. KCB said net interest income grew 8.6 per cent to Sh36.61 billion from Sh33.72 billion as it expanded its loan book to Sh1.208 trillion from Sh1.018 trillion.
The lender said the growth in interest earnings was despite a drop in asset yield across its markets due to sustained rate cuts by regulators in the region. Over the same period, non-interest income rose 8.3 per cent to Sh17.03 billion from Sh15.72 billion, raising the operating income to Sh53.64 billion from Sh49.44 billion.
KCB attributed the growth in non-interest income on expansion in digital loans disbursed during the period and a rise in foreign exchange income.
“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 catalyses economic transformation across the region,” said Paul Russo, chief executive at KCB Group.
KCB Group CEO Paul Russo at a past event. The bank screened loans worth Sh578.3 billion for environmental and social risks in 2024, bringing its cumulative green loan assessments since 2020 to over Sh2.5 trillion, according to its 2024 Sustainability Report.
Photo credit: Francis Nderitu I Nation Media Group
“We continued to optimise our regional footprint and scale to best serve our customers and create sustainable shareholder value.”
The lender said its subsidiaries, excluding KCB Bank Kenya, contributed 29.5 per cent of the group’s Sh24.4 billion pre-tax earnings and 31.5 per cent of the Sh2.254 trillion balance sheet.
The three non-banking subsidiaries KCB Bancassurance Intermediary, KCB Investment Bank and KCB Asset Management, returned pre-tax profits of Sh209 million, Sh274 million and Sh64 million, respectively.
During the review period, group operating expenses increased by 3.3 per cent to Sh29.21 billion, with the muted rise helped by a 12.4 per cent cut in provisions against potential loan losses to Sh4.91 billion from Sh5.6 billion.
Staff costs fell marginally to Sh10.54 billion from Sh10.54 billion, reflecting the absence of NBK. KCB said it posted improved asset quality across all subsidiaries, with the non-performing loans (NPL) ratio closing the quarter at 16.6 per cent from 19.3 per cent.
The review period saw the stock of NPL fall to Sh217.8 billion from Sh233.3 billion. At Sh17.81 billion net profit, KCB’s net earnings trail those of Equity Group, which announced a 23.8 per cent rise in net profit to Sh18.3 billion over the same quarter.
Looking forward, Mr Russo said the bank continues to monitor the evolving impact of the US-Israel conflict with Iran. “While economic activity in East Africa remained resilient, we continued to see the impact of the Middle East conflict on economies, with a likely ripple effect of depressed credit demand, increased credit risk and lower remittance receipts, and on deposits,” he said.
“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 Joseph Kinyua, group chairman at KCB.
