The Lower Eastern Times Opening The Third Eye
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KCB Group has posted a pre-tax profit of Sh24.4 billion for the first quarter ended March 2026, representing a 15.3 percent increase from Sh21.2 billion recorded in the same period last year.
The bank attributed the strong performance to higher operating income, solid contributions from subsidiaries, and increased customer deposits, even as the operating environment remained challenging.
Total operating income rose by 8.5 percent to Sh53.6 billion, supported mainly by growth in interest-earning assets.
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However, the lender noted that falling interest rates across some regional markets reduced asset yields and put pressure on net interest margins.
KCB Group’s total assets grew by 10.8 percent to Sh2.3 trillion, while customer deposits increased by 15.7 percent to Sh1.7 trillion, driven by both retail and corporate clients.
Chief Executive Officer Paul Russo said the results were driven by disciplined execution and continued investment in digital banking and regional expansion.
“Despite the challenging operating environment, we delivered solid growth driven by disciplined execution and continued investment in digital innovation,” Russo said.
The bank also warned that ongoing geopolitical tensions in the Middle East could affect economic activity through reduced credit demand, higher credit risk, and weaker remittance inflows.
Non-funded income increased by 8.3 percent to Sh17 billion, supported by growth in digital lending and foreign exchange trading.
KCB also reported improved asset quality, with the non-performing loan ratio dropping to 16.6 percent from 19.3 percent a year earlier, driven by recoveries and expansion of the loan portfolio.
Gross non-performing loans declined to Sh217.8 billion from Sh233.3 billion, while the group set aside Sh4.9 billion for potential loan losses.
Gross lending rose to Sh1.32 trillion from Sh1.21 trillion in the previous year.
The bank said its regional subsidiaries contributed nearly 30 percent of total earnings, while non-banking units such as insurance, investment banking, and asset management remained profitable.
Shareholder returns improved, with return on equity rising to 21.5 percent and earnings per share increasing to Sh22.18 from Sh20.03.
Group Chairman Joseph Kinyua said the results reflected the strength of KCB’s regional diversification strategy and long-term growth focus.
He added that the lender remains committed to supporting regional trade, financial inclusion, and economic development despite global uncertainties.
