KCB Group PLC has delivered a robust performance in the first half of 2024, reaffirming its dominance as East Africa's leading financial institution. The Group’s profit after tax surged by a staggering 86 per cent to Ksh29.9 billion, up from Ksh16.1 billion in the same period last year.
This remarkable growth not only points to KCB’s resilience in a challenging economic environment but also reflects its unwavering commitment to customer-centric value propositions and sustainable shareholder returns.
Focus on Customer Value
KCB's impressive performance is anchored in its customer-centred approach, which has seen the bank continuously innovate to meet the evolving needs of its 38 million customers.
By revamping its youth propositions and accelerating the growth of Micro, Small, and Medium Enterprises (MSMEs), including Female-Led and Made Enterprises (FLME), KCB has positioned itself as a vital catalyst for economic empowerment in the region.
The FLME initiative, in particular, has been a game-changer, breaking down barriers to financing for women entrepreneurs. KCB has disbursed over Ksh128 billion under this programme and targets Ksh250 billion within five years.
The bank's focus on non-financial solutions, such as capacity-building and networking opportunities, has reached over 620 beneficiaries in 2024 alone, reinforcing KCB’s role as a key enabler of inclusive growth.
KCB’s digital leadership is another pillar of its success. The Group has made significant investments in upgrading its core banking systems, particularly at BPR and NBK, to build future-ready capabilities. The introduction of an omnichannel platform for mobile and iBank at BPR, alongside the deployment of 22 new robots, has enhanced automation and operational efficiency.
The bank's digital channels have seen substantial growth, with mobile lending up by 20 per cent, internet banking by 30 per cent, and agency banking by 14 per cent. Despite a decline in ATM services, KCB’s strategic focus on digital transformation has paid off, driving a 72 per cent increase in mobile loans disbursed to Ksh187 billion.
A Strong Financial Performance
KCB’s financial strength was further demonstrated by a 6 per cent expansion of its balance sheet to Ksh1.98 trillion. The Group’s strategic focus on cost control and revenue growth led to an improved cost-to-income ratio of 46.8 per cent, down from 55.3 per cent. This disciplined approach allowed KCB to resume dividend payouts, with the Board recommending an interim dividend of Ksh4.8 billion, the largest in the bank’s history.
Optimising Data and Customer Insights
KCB’s ability to harness data and analytics has been pivotal in enhancing customer experience and driving product uptake. By leveraging key insights to appraise and score new customers, the Group has effectively managed digital product limits and resolved customer pain points, leading to a billion-shilling daily lending rate via mobile platforms. The use of lead generation algorithms has enabled KCB to cross-sell and upsell solutions, further cementing its market leadership.
KCB Group's commitment to sustainability is evident in its alignment with 14 Sustainable Development Goals (SDGs) and its ambitious target to become a net-zero carbon-emitting business by 2050. In the first half of 2024, KCB provided Ksh12.1 billion for green projects and planted 1.26 million trees as part of its carbon offset programme. Additionally, the bank screened loans worth Ksh237 billion under its Environmental and Social Due Diligence process, showcasing its dedication to responsible banking.
Empowering Communities Through Social Impact Initiatives
Beyond financial success, KCB has continued to make a significant social impact through its Foundation programs. The Jiajiri program, which focuses on youth employment, has seen 4,868 beneficiaries recruited for training in 2024. Meanwhile, the Mifugo Ni Mali initiative is transforming livestock farming in arid regions, and KCB’s education initiatives are breaking barriers for students from disadvantaged backgrounds.
Leadership and Strategic Outlook
KCB’s leadership remains optimistic about the future. CEO Paul Russo highlighted the Group's resilience in navigating tough conditions, particularly in Kenya, while Chairman Dr. Joseph Kinyua pointed to strong asset growth and better capital adequacy as key factors in the Board’s decision to recommend a Ksh1.50 per share interim dividend.
With total assets now at Ksh1.98 trillion and customer deposits stable at Ksh1.49 trillion, KCB is well-positioned to continue driving economic recovery and growth across East Africa.
Looking Ahead
As KCB Group looks to the second half of 2024, its focus will remain on transforming challenges into opportunities. With a strong financial base, innovative customer solutions, and a commitment to sustainability, KCB is set to build on its H1 successes, delivering even greater value for customers and shareholders alike.