KCB Group PLC has signalled a massive win for its digital-first strategy, posting a KSh 68.4 billion profit after tax for the full year ending December 2025. The 11% growth in bottom-line earnings comes as the lender successfully navigated the divestiture of National Bank of Kenya (NBK) while scaling its regional digital footprint.
On the back of this record-breaking performance, the Board has proposed a final dividend of KSh 3 per share. Combined with the KSh 4 interim dividend paid in November, shareholders are looking at a total windfall of KSh 7.0 per share, totaling KSh 22 billion for the year.
The Group’s revenue engine showed remarkable resilience as total income climbed to KSh 214 billion from KSh 204 billion the previous year. A critical highlight for the tech-forward market is the performance of Non-Funded Income, which now accounts for 31% of total revenues thanks to heavy lifting by the Group’s digital banking platforms. This shift toward digital efficiency is further reflected in the cost-to-income ratio, which sharpened to 42.5% from 45.4%, underpinned by a 2.5% year-on-year decline in overall operating expenses.
KCB’s balance sheet has officially crossed the KSh 2 trillion milestone, closing the year at KSh 2.15 trillion, a 9.3% growth rate that underscores the success of its diversification strategy. This expansion was supported by a 15% jump in customer loans to KSh 1.59 trillion and a matching 15% increase in customer deposits, which also closed at KSh 1.59 trillion.
“Our 2025 performance reflects the strength of the KCB franchise and the resilience of our regional footprint. Despite a challenging environment, we delivered solid growth driven by disciplined execution and digital innovation.” Paul Russo, KCB Group CEO, said.
The bank’s aggressive recovery and rehabilitation strategy paid off significantly in asset quality, as the Non-Performing Loan (NPL) ratio improved to 16.9% from 19.2%, reducing the gross NPL stock to KSh 211.8 billion.
Beyond the core banking business, the Group’s specialized subsidiaries delivered explosive growth figures that signal a maturing ecosystem. KCB Asset Management led the charge with a 54% growth in Profit Before Tax (PBT) to KSh 160 million, followed by KCB Investment Bank at 31% growth (KSh 348 million) and KCB Bancassurance at 29% growth (KSh 1.14 billion). Collectively, regional subsidiaries and non-banking arms now contribute 30.7% of the Group’s total PBT, proving that the lender’s “multi-market” model is firing on all cylinders.
With a Return on Equity (ROAE) of 22.5% and a liquidity ratio of 50.8%, well above the 20% regulatory requirement, KCB enters 2026 with a massive capital buffer.
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