KCB Group has reclaimed its position as East Africa’s most profitable bank with an impressive 69% growth in net earnings for Q1 2024, reaching Sh16.5 billion. The bank’s robust performance underscores its resilience and strategic growth initiatives.
Under the leadership of Managing Director and CEO Paul Russo, KCB Group’s Q1 results show significant milestones, including a 31.6% increase in total revenues to Sh48.5 billion. This growth was driven by both funded and non-funded lines, with non-funded income accounting for 36% of total revenues.
Customer deposits surged by 25.4% to Sh1.5 trillion, reflecting strong client confidence in the brand. Meanwhile, customer loans increased by 12.2% to Sh1.13 trillion, supporting business activities across the region.
Russo highlighted the bank’s investments in digital and payments capabilities, which have contributed to improved operational efficiency and customer satisfaction. The bank’s digital banking and alternative channels have made banking more accessible, driving increased transaction volumes.
KCB Group’s diversification strategy is paying off, with businesses outside Kenya contributing 17.9% of pre-tax profits and 13.1% of total assets. The bank’s operational efficiency also improved, with a drop in the cost-to-income ratio to 43.3% and a strong focus on cost management.
Despite inflationary pressures and increased total costs, KCB Group maintained a robust capital profile, exceeding regulatory requirements with a core capital to risk-weighted assets ratio of 15.7% and a total capital to risk-weighted assets ratio of 17.8%.
