KCB Group investors are set to pocket Ksh 9.5 billion as interim dividend after the bank reported a 20.8% increase in profit before tax to Ksh 49.3 billion.
According to the bank, the board approved the interim dividend of Ksh 3 per share from Ksh 2, which is 50% higher compared to last year and is to be paid in November 2026 to shareholders.
The move follows the improvements in the banks bottom line in six months to June this year after total income grew by 10% to Ksh 108 billion supported by a 7% increase in net interest income and a 15% growth in non-funded income.
“Our strong half-year performance reflects the resilience of KCB Group’s diversified business model, the strength of our regional footprint, and the confidence our customers continue to place in us,” said KCB Group Chief Executive Officer Paul Russo.
During the period, non-funded income increased to Ksh 34.1 billion while funded income stood at Ksh 74.
The bank also managed to trim its holding of bad loans by 7.8% in six months to June this year on account proactive rehabilitation of distressed facilities, strong recoveries and adoption of better credit risk management practice.
The lender says the stock of gross non-performing loans reduced by Ksh 17.3 billion, from Ksh 221 billion reported over the same period last year to Ksh 203.8 billion.
KCB says the improved asset quality saw its ratio of NPL to gross loans ease to 15.1% from 18.7%.
“The performance reflects the effectiveness of our governance framework, and the disciplined execution of our long-term strategy,” added Dr. Joseph Kinyua, KCB Group Chairman.
The lender says total assets grew by 16.8% to Ksh 2.3 trillion, driven by a 15.1% increase in customer deposits to Ksh 1.7 trillion and a 14.2% growth in gross loans to Ksh 1.3 trillion.
