KCB Group posted strong earnings growth in the first half of 2026. The lender also increased its interim dividend by 50 percent. The results were driven by higher lending, deposit growth and improved asset quality.
KCB Group reported a profit before tax of KSh49.3 billion for the six months ended June 2026. This represented a 20.8 percent increase compared to the same period last year.
The strong performance was supported by growth in loans and customer deposits. Gross loans rose 14.2 percent to KSh1.3 trillion. Customer deposits increased 15.1 percent to KSh1.7 trillion. Total assets also expanded by 16.8 percent to KSh2.3 trillion.
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Income growth remained steady across the business. Total income rose 9.5 percent to KSh108.1 billion. Non-funded income grew 15.4 percent to KSh34.1 billion. Funded income increased 7 percent to KSh74 billion.
KCB also reported improvements in asset quality. Gross non-performing loans fell by KSh17.3 billion to KSh203.8 billion. As a result, the NPL ratio improved to 15.1 percent from 18.7 percent. The bank attributed the improvement to recoveries, rehabilitation of distressed facilities and stronger credit risk management.
Regional subsidiaries continued to play a key role in earnings growth. The operations contributed 27.7 percent of group profit before tax. They also accounted for 31.1 percent of the group’s balance sheet.
KCB Investment Bank recorded one of the strongest performances within the group. Its profit before tax surged 226.6 percent to KSh503.2 million. The growth was supported by advisory mandates and capital markets transactions.
The lender maintained strong returns and capital levels. Return on equity stood at 21.1 percent. Shareholder equity rose 16.3 percent to KSh357 billion. The loan-to-deposit ratio improved to 78.8 percent from 79.5 percent.
In a move likely to please investors, the board increased the interim dividend by 50 percent to KSh3 per share. The payout amounts to KSh9.64 billion.
KCB also remained well above regulatory capital requirements. Its core capital ratio stood at 18.6 percent, compared to the statutory minimum of 10.5 percent. The total capital ratio was 21.6 percent, exceeding the regulatory threshold of 14.5 percent.
The results highlight KCB’s continued growth momentum. They also reflect stronger balance sheet quality and improving profitability across its regional operations.
