KCB Group (KCB) Q2 2025 earnings summary

Executive summary

• Net profit rose 8% year-over-year to KShs.32.3B, driven by strong net interest income, cost discipline, and customer-focused initiatives.

• Sale of National Bank of Kenya (NBK) to Access Bank completed, with proceeds supporting capital allocation and a special dividend.

• Digital transformation advanced, with 99% of transactions via digital channels and launch of a new unified mobile app.

• Subsidiaries outside Kenya contributed over 32% of group profit and showed robust asset growth, especially in Rwanda, Uganda, and Burundi.

• Strategic focus remains on customer-centricity, digital leadership, sustainability, and financial inclusion.

Financial highlights

• Total assets reached KShs.1.97T, a 7% like-for-like growth year-over-year, stable after NBK sale.

• Net loans grew 12% like-for-like (2.8% including NBK impact) to KShs.1.18T, with strong growth in energy, industrials, and infrastructure.

• Customer deposits at KShs.1.48T, with a 6% like-for-like increase and stable mobilization.

• Net earnings rose 8% to KShs.32.3B; total income up 4% to KShs.98.7B; net interest income up 13%.

• Cost-to-income ratio improved to 46%, with costs up 2.5% year-over-year.

• NPL ratio dropped 60 bps to 18.7%, with NPL stock declining to KShs.221B.

• Interim and special dividend of KShs.4 per share, totaling nearly KShs.13B, the largest interim payout in group history.

Outlook and guidance

• H2 2025 targets are ambitious, with management urging double efforts to meet stretched goals.

• FY 2025 guidance: ROE 22–24%, cost/income ratio 43–45%, NPL ratio 14–16%.

• Focus on expanding trade, digital banking, regional integration, and sustainable shareholder returns.

• Strategies in place to improve deposit mobilization and further reduce NPLs.

• Projected business trajectory supports historic dividend proposals.