KCB Group has reported a strong financial performance for the first quarter of 2026, posting an 11 percent increase in net profit to Sh17.81 billion as the lender benefited from higher interest earnings and growth in non-interest income.
The regional banking giant said the improved earnings were driven by expansion in its loan book, increased digital lending activity, and stronger foreign exchange income despite a challenging economic environment across East Africa. The lender’s net profit rose from Sh16.09 billion recorded during a similar period last year.
According to the bank, net interest income climbed by 8.6 percent to Sh36.61 billion, supported by growth in customer lending and reduced funding costs. KCB’s loan book expanded to over Sh1.2 trillion, reflecting increased demand for credit across its markets.
Non-interest income also registered notable growth, rising by more than 8 percent to Sh17.03 billion. The increase was mainly linked to higher digital loan disbursements and stronger foreign exchange trading income. Total operating income for the quarter rose to Sh53.64 billion.
KCB Group Chief Executive Officer Paul Russo said the bank remained focused on digital innovation, operational efficiency, and regional expansion strategies aimed at strengthening shareholder value and supporting economic growth.
The lender also reported improvements in asset quality, with its non-performing loan ratio dropping to 16.6 percent from 19.3 percent recorded previously. Gross non-performing loans declined to Sh217.8 billion, signaling improved recoveries and credit management efforts.
KCB noted that subsidiaries outside Kenya contributed nearly 30 percent of the group’s pre-tax earnings, highlighting the growing importance of its regional operations in markets such as Uganda, Rwanda, Tanzania, Burundi, South Sudan, and the Democratic Republic of Congo.
The lender’s latest results place it among the top-performing banks in the region, although its net earnings remained slightly below those of Equity Group Holdings, which recently announced a profit of Sh18.3 billion for the same period.
0 Comments