Regional lender KCB Group's foray into East Africa continues to pay dividends with the lender's nine-month net profit increasing by 3 percent to KES47.3 billion with subsidiaries outside Kenya, contributed 35 percent of gross earnings.

During the quarter under review, Group balance sheet expanded by 2.6 percent to close at KES2.04 trillion, despite the sale of National Bank of Kenya (NBK) in May 2025 to Nigeria's Access Bank. 

In an update to the markets on Wednesday, KCB's stock of gross loans and advances during the period rose by 7 percent to KES1.24 trillion, powered by continued uptake of credit by building and construction, agriculture, manufacturing, energy and water segments.

However, the bank's gross non-performing loans increased by 3 percent during the period ended September 30 to KES22.1 billion. The bank has set aside KES18.3 billion cover for potential loan loss. Data shows Group's NPL ratio stood at 17.8 percent, down from 18.5 percent helped by recovery actions coupled with sale of NBK. 

“Despite a tough operating environment in all our markets, we have delivered a strong performance showing the resilience of the Group. We continue to execute our business strategy that is anchored on ‘Transforming Today Together’ and build an agile business that is targeted at transforming the lives of our customers," commented Group CEO Paul Russo.

At the same time, the Group maintained a stable deposit franchise across all markets, closing the nine months at KES1.52 trillion with a stable deposit mix. 

During the period, Group subsidiaries, excluding KCB Bank Kenya, reported strong performance, with gross earnings accounting for 35 percent of the regional lender's earnings and 31.3 percent of its balance sheet. 

Non-banking subsidiaries performance

Disclosures show that Group's non-banking subsidiaries equally posted strong gross profit with KCB Bancassurance intermediary recording 16 percent growth to KES833 million.

KCB Investment Bank's gross earnings surged by 90 percent to KES230 million even as KCB Asset Management enjoyed a 71 percent rise to KES118 million. 

At the same time, total revenue grew by 4.5 percent to KES149.4 billion, on increased net interest income that rose 12.4 percent to KES104.3 billion. Non-interest income closed the period at KES45.1 billion. 

The Group said digital channels helped ring-fence non funded income which came under pressure from reduced forex earnings, decline in fees and commissions from Congo subsidiary, TMB, due to closure of branches in the troubled Eastern part of the mineral rich country. 

“We are optimistic that we will close the year strong. The Group is well positioned to navigate the impacts in the operating environment to deliver the best outcome for all our stakeholders. We have over the years built a resilient, dynamic and sustainable business for the future” said KCB Group Chairman Dr. Joseph Kinyua. 

Last week, KCB Group paid a total dividend of KES4.00 per share amounting to a payout of KES13 billion. 

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