KCB subsidiaries have powered the lender to post a marginal increase in net profit to KES16.5 billion for the first quarter of this year compared to KES16.48 billion reported in 2024.

In an update on Wednesday, the lender said its regional businesses accounted for 32 percent of its earnings for the first three months of 2025 as KCB continues to reap from its initiatives in deepening regional presence.

During the quarter marked by a "challenging operating environment," the Group said its balance sheet grew to KES 2.03 trillion, up from the KES1.99 trillion reported during the comparable period in 2024.

“The quarter’s performance reflects a strong push by teams across the business. The Group was resilient, supported by new business lines, deepening of digital channels and innovative customer value propositions,” explained Group CEO Paul Russo.

He added, “As we steer the remainder of the year, our focus is on leveraging the Group’s scale, capabilities, people and partners, to deepen relationships and financial inclusion. We will continue to harness technology to enhance banking services and drive relevant products and services that contribute to economic growth, sustainability, and shareholder value” he added.

Group operating expenses edged up by 7.8 percent to KES22.7 billion, largely driven by workforce-related expenses and budgeted investment in technology.

At the same time, loan loss provisions declined by 11.3 percent driven by "an aggressive Non-Performing Loans (NPL) monitoring strategy, particularly targeting accounts with persistent delinquency and at risk of transitioning to NPL status, strengthened collateral positions and successful rehabilitation of key NPL exposures across the subsidiaries," the Group stated.

During the quarter, the Group’s stock of gross NPLs closed the period at KES233 billion while the NPL ratio stood at 19.3 percent, reflecting the challenging economic conditions in different sectors across the markets.

Further, customer deposits hit KES1.4 trillion and despite pressure attributable to the appreciation of the Kenyan Shilling against the US dollar, customer loans and advances closed the quarter at KES1.02 trillion.

“In the face of a challenging operating environment, KCB has demonstrated remarkable resilience and robust performance, underscoring the strength of our fundamentals, strategic direction, and leadership depth. The environment is expected to be even tougher this year with all the headwinds streaming from global trade tariff wars to shifting geopolitics in the East region. KCB Group remains dedicated to ensuring long-term sustainability and shared value for all stakeholders,” said KCB Group Chairman Dr. Joseph Kinyua.

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