KCB Group PLC has posted a pre-tax profit of KShs. 24.4 billion for the first quarter ending March 31, 2026, representing a 15.3 percent increase compared to KShs. 21.2 billion recorded during a similar period last year.
The lender attributed the improved performance to growth across its diversified regional business operations, increased customer activity, and expansion in interest-bearing assets despite a difficult operating environment.
The Group’s total operating income rose by 8.5 percent to KShs. 53.6 billion, driven largely by growth in interest earning assets that helped cushion the impact of declining Net Interest Margins.
The sustained rate cuts by regulators across the region, however, affected asset yields in all KCB markets during the period under review.
KCB Group’s balance sheet expanded to KShs. 2.3 trillion, marking a 10.8 percent growth supported by increased customer activity across key business segments. Customer deposits also grew by 15.7 percent.
Excluding the impact of National Bank of Kenya (NBK), which the Group divested from in May 2025, year-on-year growth in pre-tax profit and operating income stood at 17 percent and 16 percent respectively.
Subsidiaries outside KCB Bank Kenya maintained strong performance, with their profit before tax accounting for 29.5 percent of overall Group earnings and 31.5 percent of the Group balance sheet.
The Group’s non-banking subsidiaries also continued to contribute positively, with KCB Bancassurance Intermediary posting KShs. 209 million in profit before tax, KCB Investment Bank reporting KShs. 274 million, while KCB Asset Management recorded KShs. 64 million.
KCB Group Chief Executive Officer Paul Russo said the lender remained focused on execution, digital transformation, and supporting economic growth 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. We continued to optimize our regional footprint and scale to best serve our customers and create sustainable shareholder value,” said KCB Group CEO, Paul Russo.
“While economic activity in East Africa remained resilient, we continued to see the impact of the Middle East conflict on economies, with a likely ripple effect of depressed credit demand, increased credit risk and lower remittance receipts, and on deposits,” he added.
The Group’s total operating costs rose by 7.3 percent to KShs. 24.3 billion, mainly due to higher workforce expenses, technology investments, and expansion costs.
Non-funded income increased by 8.3 percent to KShs. 17 billion supported by growth in digital loans and foreign exchange income.
On asset quality, the Group recorded improvements across all subsidiaries, reducing the Non-Performing Loan ratio to 16.6 percent from 19.3 percent. The stock of non-performing loans declined to KShs. 217.8 billion from KShs. 233.3 billion.
KCB also maintained prudent provisioning, setting aside KShs. 4.9 billion to cover potential loan losses amid prevailing economic risks.
The Group’s gross loan book rose to KShs. 1.32 trillion from KShs. 1.21 trillion during the same period last year.
KCB posted a Return on Equity of 21.5 percent, while total equity attributable to shareholders grew by 18.5 percent to KShs. 352.2 billion.
Earnings per share increased to KShs. 22.18 from KShs. 20.03 recorded during the same period last year.
The lender maintained strong capital buffers with Group core capital standing at 18.2 percent against the statutory minimum of 10.5 percent, while total capital to risk-weighted assets stood at 21.6 percent against the required minimum of 14.5 percent.
KCB Group Chairman Dr. Joseph Kinyua said the strong start to the year reflected the lender’s long-term strategy and resilience across regional markets.
“The Group’s strong start to the year is a clear affirmation of the effectiveness of our long-term strategy, the resilience of our regional businesses, and the discipline with which we continue to execute our priorities. We remain confident in the Group’s ability to navigate evolving market dynamics while continuing to support economic growth, regional trade, and financial inclusion across our markets. The Middle East conflict presents a significant counterforce to global growth through its impact on commodity markets, inflation expectations and financial conditions,” said KCB Group Chairman, Dr. Joseph Kinyua.