Shareholders of KCB Group will pocket a final dividend of Sh7 per share after the bank posted a net profit of Sh68.4 billion in the year ended December 31, 2025.
This is more than twice the Sh3 per share dividend that investors received in 2024.
The 11 per cent growth in net earnings is attributed to an expanded loan book, which delivered higher income across key business lines, coupled with sustained cost management across the Group.
“On the back of the strong performance, the board has proposed a final dividend payout of Sh3 per share, subject to shareholder approval. This is in addition to an interim payout of Sh4 per share, which was paid out in November 2025, bringing the total dividend payout for the year to Sh7 per share,’’ the lender said on Wednesday.
This means that the lender will give out Sh22 billion in total dividends.
The board’s declaration fueled the bank’s stock performance on the Nairobi Securities Exchange (NSE), with the share price rising 1.3 per cent to Sh79, Sh0.25 shy of its highest level of Sh79.25.
The bank began the year trading at Sh65.75 and has since gained 17.9 per cent on that valuation.
Despite the rally, the stock currently ranks 17th on the NSE by year-to-date performance, suggesting further upside as earnings momentum strengthens.
Market analysts say shareholders can be optimistic about the stock, given that it has gained 11 per cent over the past four-week period.
During the period under review, KCB maintained a strong balance sheet with total assets growing by 9.3 per cent to Sh2.15 trillion.
This is despite divesting in the National Bank of Kenya, demonstrating the Group’s resilience and the success of its diversification strategy and innovative financial solutions.
Customer loans grew by 15 per cent to close at Sh1.59 trillion; this growth was used to fund interest-earning assets, which closed at Sh1.84 trillion, a year-on-year increase of 13.8 per cent.
Total revenues grew steadily to Sh214 billion from Sh204 billion in the same period last year. This was driven by higher net interest income as the Group continued to deepen its support for households, businesses and the public sector.
Non-Funded Income delivered 31 per cent of the total revenues, on the back of investments in digital banking.
KCB Group CEO, Paul Russo, told investors that the 2025 performance reflects the strength of the KCB franchise, the resilience of the regional footprint, and the continued trust that customers place in the firm’s systems.
“Despite a challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our unwavering commitment to supporting sector-focused lending that catalyzes economic transformation across the region,’’ Russo said.
“We remained focused on sustainable growth, supporting customers and delivering long-term value for shareholders”.
The Group continued to benefit from its regional diversification strategy, with subsidiaries excluding KCB Bank Kenya contributing 30.7 per cent in profit before tax (PBT) and 30.5 per cent of the total balance sheet.
The three non-banking subsidiaries delivered strong PBT performance: KCB Bancassurance Intermediary (Sh1.14 billion – 29 per cent growth), KCB Investment Bank (Sh348 million – 31 per cent growth), and KCB Asset Management (Sh160 million – 54 per cent growth).
The Group’s focus on cost management saw the cost-to-income ratio dropping to 42.5 per cent from 45.4 per cent the previous year.
Overall, operating expenses declined by 2.5 per cent, while the stock of gross loans and advances rose 16.2 per cent to Sh1.25 trillion, driven by new-to-bank growth across key sectors of the economy.
KCB Group also maintained a stable deposit franchise across all markets, with the deposit book closing at Sh1.59 trillion, up 15 per cent.
The lender’s asset quality improved during the period, with the Non-Performing Loans (NPL) ratio dropping to 16.9 per cent, down from 19.2 per cent, driven by a proactive rehabilitation strategy, aggressive recovery efforts, and the hive-out of National Bank of Kenya.
The stock of gross NPL stood at Sh211.8 billion, down from Sh225.7 billion the previous year.
The Group maintained a strong capital and liquidity position, with the Group’s core capital as a proportion of total risk-weighted assets closing at 18.4 per cent against the statutory minimum of 10.5 per cent.
The total capital-to-total risk-weighted assets ratio was 22.1 per cent, above the regulatory minimum of 14.5 per cent. In comparison, the liquidity ratio was 50.8 per cent, above the regulatory minimum of 20 per cent.
On shareholder returns, Return on Equity (ROAE) stood at 22.5 per cent while Return on Assets (ROA) was 3.3 per cent, signaling efficient deployment of equity to generate high returns.
“Looking ahead, we are optimistic about sustained business activity and economic growth prospects this year across the markets we operate in,’’ Russo said.
“We are closely watching the increased global uncertainties attributed to heightened geopolitical tensions and higher tariffs.”
“KCB Group chairman, Joseph Kinyua, said that the bank remains committed to providing strong governance and strategic oversight to ensure that it continues to deliver long-term value while supporting economic transformation across East Africa,” he said
Comments 0
Sign in to join the conversation
Sign In Create AccountNo comments yet. Be the first to share your thoughts!