KCB Group (KCB) Q3 2024 earnings summary

Executive summary

• Profit after tax rose 49% year-over-year to Ksh 45.8B, driven by strong revenue growth, improved efficiencies, and international business momentum.

• Revenue increased 22% year-over-year to Ksh 142.9B, supported by higher interest income and non-funded income.

• Subsidiaries outside Kenya contributed 36.6% of group PAT and over a third of total assets, highlighting diversification.

• Shareholder equity grew 14% to Ksh 249B, and earnings per share improved 49% to Ksh 18.99.

• KCB maintained the largest balance sheet in the region at Ksh 2.0T, despite a 5% decline due to currency appreciation.

Financial highlights

• Net interest income rose 24% year-over-year, offset by higher interest expense from increased funding costs.

• Non-funded income increased 18% to Ksh 50.1B, led by 68% growth in forex income and strong TMB revenues.

• Operating expenses grew 11%, slower than revenue, resulting in positive jaws and a cost-to-income ratio improvement to 47.4%.

• Customer deposits declined 7% year-over-year to Ksh 1.54T, mainly due to Ksh appreciation.

• Net loans & advances grew to Ksh 1.1T, led by retail sector lending.

Outlook and guidance

• FY 2024 guidance maintained for most metrics; NPL ratio targeted at 16–18% by year-end.

• Loan growth expected at 14–17% and deposit growth at 10–13% on a constant currency basis.

• Return on equity projected at 22–24% for FY 2024.

• Management anticipates a strong year-end, citing improving market conditions and customer-focused solutions.

• Group expects resilience with recovering economic conditions across markets.