The Board has proposed a ultimate dividend of $0.012 per share, bringing the whole payout for the yr to $0.023 per share—amounting to $74 million.
Lender’s steadiness sheet closed the yr at $15.13 billion (KSh1.96 trillion), powered by a powerful deposit development and secure mortgage portfolio.
Working prices grew by 11.8% to $717 million (KSh92.9 billion), pushed by workers prices, and tech investments.
KCB Group revenue after tax for the total yr 2024 grew by 64.8 per cent to $477 million (KSh61.8 billion), attributable to robust enlargement throughout all its companies subsidiaries within the East African market.
This efficiency was a rise from the $289.5 million (KSh37.5 billion) which the financial institution that has presence in Kenya, Uganda, Tanzania, Rwanda, Burundi, the Democratic Republic of Congo (DRC) and South Sudan reported throughout an analogous interval in 2023.
“The robust efficiency illustrates our resolve over the previous 3 years to construct an organisation for the long run that’s anchored on delivering worth for our prospects, shareholders and all stakeholders,” famous KCB Group CEO Paul Russo in the course of the launch of the financial institution outcomes on Wednesday.
The Nairobi Securities Change-listed Group’s steadiness sheet closed the yr at $15.13 billion (KSh1.96 trillion), powered by a powerful deposit development and secure mortgage portfolio, regardless of the powerful working surroundings.
Whole revenues elevated 24 per cent to $1.6 billion (KSh204.9 billion) on larger curiosity earnings and non-funded earnings arising from international trade buying and selling earnings.
“Our focus is on making certain now we have fit-for-purpose know-how that delivers seamless, dependable, safe, and revolutionary options for our prospects,” added.
He added, “In step with, our 2024–2026 Technique dubbed Remodeling As we speak Collectively, we stay dedicated to the precept of Sustainability and Shared Worth— unlocking affect in a significant and socially accountable manner.”
KCB Group 2024 key monetary efficiency highlights
Based on the lender, its enterprise diversification mannequin continued to ship robust advantages, with the contribution by subsidiaries (excluding KCB Financial institution Kenya) to the whole property standing at 34.9 per cent, whereas the share of revenue after tax closed the yr at 30.3 per cent.
What’s extra, the whole earnings elevated by 24 per cent to $1.6 billion (KSh204.9 billion) from KSh165.2 billion that was reported in 2023, with web curiosity earnings posting 28 % development. Throughout the yr, non-funded earnings contributed 33 per cent of the whole revenues, boosted by charges and commissions from transactions, commerce finance and foreign exchange.
Working prices grew by 11.8 per cent to $717 million (KSh92.9 billion), impacted by workers prices, technological investments, inflationary pressures and business-driven expenditure.
The Group continued to prioritize efforts to enhance asset high quality with provisions for anticipated credit score losses declining by 11 per cent pushed by the strengthening of the Kenya Shilling, profitable rehabilitation of key NPL exposures and an aggressive restoration technique, the lender stated.
The Group’s inventory of gross NPLs closed the interval at $1.7 billion (KSh225.7 billion). The NPL ratio stood at 19.2 per cent, reflecting the arduous financial circumstances in several sectors throughout the markets.
Learn additionally: Africa’s commerce finance will get $50M shot within the arm as UK’s GHIB and BII be part of forces
Buyer loans and advances
On the steadiness sheet facet, buyer deposits closed the yr at $10.8 billion (KSh1.4 trillion) and regardless of stress attributable to the appreciation of the Kenyan Shilling towards the US greenback, buyer loans and advances stood at $7.64 billion (KSh990.4 billion) as of December thirty first, 2024.
Return on fairness improved to 24.6 per cent up from 17.8 per cent final yr. On the similar time, whole fairness attributable to Group shareholders elevated by 20.8 per cent from $1.76 billion (KSh227.5 billion) to $2.1 billion (KSh274.9 billion), highlighting the sustained worth that the lender continued to ship for shareholders.
The Board has proposed a ultimate dividend payout of $0.012 (KSh1.50) per share, topic to shareholder approval. That is along with an interim payout of KSh1.50 per share which was paid out in September 2024. This brings the whole dividend payout for the yr to $0.023 (KSh3.00) per share, amounting to a complete of $74 million (KSh9.6 billion) for the yr 2024.
“We’re excited in regards to the robust income witnessed throughout all entities. We’re optimistic that there shall be a pickup in financial exercise this yr throughout markets, supported by resilience of key service sectors and agriculture, anticipated restoration in development of credit score to the non-public sector, and improved exports. We’re regularly ring-fencing our enterprise by preserving capital and containing prices for long-term sustainability,” stated KCB Group Chairman Dr. Joseph Kinyua.
“Sustainability and embedding our ESG priorities will stay key to our technique in 2025. Leveraging the power of our Basis and dealing with the event companions, we are going to proceed to combine precedence SDGs throughout the enterprise with concentrate on social affect, local weather motion, and nature danger administration” he added.
Lending to climate-related tasks
Final month, KCB Financial institution Kenya acquired a $100 million tier 2 capital facility from the British Worldwide Funding (BII), the UK’s growth finance establishment and affect investor to extend its lending capability to climate-related tasks and women-led small and medium-sized enterprises (SMEs).
The funding will strengthen KCB Financial institution’s steadiness sheet and fund native firms scaling revolutionary local weather applied sciences, together with renewable power, inexperienced mobility, and companies creating sustainable worth chains within the agriculture sector.
Final month, KCB Group signed as much as the Pan-African Cost and Settlement System (PAPSS), reinforcing its dedication to enhancing cross-border commerce and monetary integration throughout the continent. As the primary financial institution in East Africa to combine PAPSS into its techniques, KCB prospects will now have the ability to take pleasure in sooner settlement occasions, decreased prices related to foreign money conversion, and elevated entry to new markets throughout Africa.
PAPSS is a centralized monetary market Infrastructure developed by the African Export Import Financial institution (Afreximbank) to facilitate cross-border funds and commerce transactions, lowering each prices and processing occasions.
(KSh1=US$0.0077)
