The largest bank in Kenya, KCB Group, saw a significant increase in profits of 49% during the first nine months of 2024, driven by a growth in income. Profits surged to KES 45.8 billion ($354 million) from KES 30.7 billion ($238 million) in the same period the previous year.
The bank also experienced a 22% rise in revenue, reaching KES 142.9 billion ($1.1 billion), attributed to various activities including lending, foreign exchange gains, and transaction fees.
Total assets of the bank expanded to KES 2.0 trillion ($15.4 billion), with a large portion coming from customer deposits totaling KES 1.5 trillion ($11.5 billion). Net loans and advances increased to KES 1.1 trillion ($8.5 billion), particularly driven by growth in retail sector lending.
Despite challenges such as high non-performing loans amounting to KES 215.3 billion ($1.67 billion), the bank reported improved returns for shareholders, with return on equity rising to 25.6%. Shareholders’ funds also grew to KES 249 billion ($1.9 billion).
Expansion into regional markets contributed significantly to the bank’s performance, with subsidiaries outside Kenya contributing to a substantial portion of profits and total assets. However, challenges persist in sectors like real estate and manufacturing, affecting the resolution of bad loans.
The bank’s capital remains robust, surpassing regulatory limits, except for one subsidiary, the National Bank of Kenya (NBK), which is yet to meet these standards. Access Bank recently obtained approval to acquire NBK in a deal valued at $100 million, signaling further developments in the banking sector.