KCB Group declares Sh13 billion payout after National Bank sale, shares windfall for 2025
The announcement on shareholder returns follows an eight per cent year-on-year growth in net profits, rising from Sh29.9 billion in the previous corresponding period to Sh32.3 billion, as all business franchises posted higher earnings, supported by customer-focused initiatives.
KCB Group shareholders are set for a windfall for the first half of 2025, following the completion of the sale of National Bank of Kenya, where the Group held full ownership.
In line with the transaction, the lender’s board has recommended a special dividend of Sh2.00 per share—the first in the bank’s history—alongside a basic interim dividend also capped at Sh2.00 per share.
The combined payout amounts to Sh13 billion, marking KCB’s largest-ever interim distribution.
KCB Group and Access Bank finalised the sale of National Bank of Kenya Limited (NBK) to Access Bank Plc in May this year, concluding a transaction that was initiated in March 2024.
The announcement on shareholder returns follows an eight per cent year-on-year growth in net profits, rising from Sh29.9 billion in the previous corresponding period to Sh32.3 billion, as all business franchises posted higher earnings, supported by customer-focused initiatives.
Speaking during the investor briefing on Wednesday, Group CEO Paul Russo said business across markets remains resilient despite the tough operating environment in key markets like Kenya.
“Despite this, we have placed our customers at the fore, to ensure we meet their needs in a timely manner,” Russo said.
Subsidiaries outside KCB Bank Kenya continued to deliver stronger performance, with profit before tax accounting for 33.4 per cent of overall Group earnings and 31.4 per cent of the balance sheet.
Gross profit contribution from non-banking entities—KCB Investment Bank, KCB Asset Management, and KCB Bancassurance Intermediary Limited—increased to 2.1 per cent from 1.8 per cent in the same period last year.
Total assets remained stable at Sh1.97 trillion, while the loan portfolio grew by 2.8 per cent to Sh1.18 trillion, supported by new business across subsidiaries.
Customer deposits stood at Sh1.48 trillion, with deposit mobilisation during the period offsetting the impact of the NBK sale and Uganda’s transition to its own Government-to-Government oil importation programme.
Total revenue grew 4.3 per cent, driven by higher net interest income, which rose to Sh69.1 billion from Sh61.3 billion. Interest income from customer loans increased due to improved yields and loan volumes during the period.
Interest rates
Cost of funds remained on par with the previous period and is expected to decline during the year as interest rates continue trending downwards across most markets.
Notably, the Group’s digital channels continued to offer unmatched convenience to customers, with 99 per cent of transactions conducted through non-branch channels. This helped protect the Group’s non-funded income, which stood at Sh29.5 billion, despite a notable impact from reduced foreign exchange earnings.
To further expand its digital footprint, the lender has launched a new unified mobile app, available to all Kenyan customers starting August 11. The platform introduces self-onboarding capabilities, allowing customers to register and begin banking instantly, anytime, anywhere.
Powered by advanced artificial intelligence, data analytics, and a mini-APP ecosystem, the lender says the platform is built for scale, agility, and inclusivity.
Nevertheless, the Group’s total expenses for the period closed at Sh45.4 billion, with the cost-to-income ratio stable at 46.0 per cent.
Given the challenging economic conditions in different sectors across its markets, the Group increased provisions for expected credit losses through judicious provisioning.
Non-performing loans (NPLs) declined to 18.7 per cent from 19.2 per cent in December 2024, with the NPL stock standing at Sh221.1 billion.
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