KCB Group has reported a pre-tax profit of KSh24.4 billion for the first quarter ending March 31, 2026, marking a 15.3% increase from KSh21.2 billion recorded during a similar period last year.
The lender attributed the strong performance to sustained growth across its regional subsidiaries, expansion in interest-earning assets, and diversified revenue streams despite what it described as a difficult operating environment. Total operating income rose by 8.5% to KSh53.6 billion, even as declining interest margins weighed on asset yields following continued rate cuts by regional regulators.
The Group’s balance sheet expanded by 10.8% to KSh2.3 trillion, supported by increased customer activity and a 15.7% rise in customer deposits. Excluding the impact of National Bank of Kenya, which KCB divested from in May 2025, pre-tax profit and operating income grew by 17% and 16% respectively.
KCB Group Chief Executive Officer Paul Russo said the results reflected disciplined execution and continued investment in digital innovation across the region.
“Despite the challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our unwavering commitment to providing financing which catalyzes economic transformation across the region,” Russo said.
The bank noted improved asset quality during the quarter, with the Non-Performing Loan (NPL) ratio declining to 16.6% from 19.3%, while the stock of NPLs dropped to KSh217.8 billion from KSh233.3 billion. Gross loans increased by 9.1% during the period.
Non-funded income rose by 8.3% to KSh17 billion, boosted by growth in digital loans and foreign exchange income. Meanwhile, customer deposits grew 16% to KSh1.7 trillion, while the gross loan book stood at KSh1.32 trillion.
The Group also maintained strong capital buffers, with core capital to risk-weighted assets standing at 18.2% against the statutory minimum of 10.5%. Return on Equity closed the quarter at 21.5%.
KCB Group Chairman Joseph Kinyua said the results underscored the resilience of the bank’s regional business strategy, although geopolitical tensions in the Middle East continue to pose risks to global economic growth.
Among recent developments, KCB highlighted a KSh12.5 billion Green Climate Fund financing approval to support green projects for MSMEs and farmers, sponsorship of the 2026 WRC Safari Rally, and the rollout of a KSh20 flat fee on Pesalink transfers with free transfers below KSh1,000.
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