KCB half-year profit rises 20.8% to Ksh49.3 billion as board approves higher dividend

KCB Group announced a significant 20.8% rise in half-year profit to Ksh49.3 billion, ending June 30, 2026. The improvement was driven by higher lending, deposit growth, and improved asset quality. In response, the board approved a dividend increase, paying Ksh3.00 per share, a 50% hike from the previous period. This dividend payout totals Ksh9.64 billion.

The bank's balance sheet expanded by 16.8% to Ksh2.3 trillion, solidifying its position among East Africa's largest banking groups. Deposits rose by 15.1% to Ksh1.7 trillion, while gross loans increased by 14.2% to Ksh1.3 trillion. The growth in lending came from retail, SMEs, and corporate customers. CEO Paul Russo credited the bank's regional operations and diversified business model for the strong performance.

Russo added that the bank would continue supporting businesses and households while investing in digital banking and long-term growth. Total income rose by 9.5% to Ksh108.1 billion, with non-funded income increasing by 15.4% to Ksh34.1 billion and funded income growing by 7% to Ksh74 billion. The regional banking subsidiaries contributed 27.7% of group profit before tax and 31.1% of total assets.

KCB's non-banking businesses also saw strong growth, with KCB Investment Bank's profit before tax rising by 226.6% to Ksh503.2 million and KCB Corporate Trustee Services reporting a 79.8% increase to Ksh142.5 million. The bank's loan book showed a significant improvement, with non-performing loans falling by Ksh17.3 billion to Ksh203.8 billion and the non-performing loan ratio improving to 15.1%.

The loan-to-deposit ratio improved to 78.8% and return on equity stood at 21.1%. Shareholders' equity increased by 16.3% to Ksh357 billion. Group Chairman Joseph Kinyua praised the disciplined execution and prudent governance, stating that the results reflected the effectiveness of the bank's governance framework and its long-term strategy.

KCB's H1 2026 results were released on the same day that Co-operative Bank announced its best-ever half-year performance, but KCB remained significantly larger by assets, deposits, and loans.