KCB Group Q3 2025 net profit rises a marginal 3% to Ksh. 47.3 billion

KCB Group PLC has released its unaudited financial results for the third quarter of 2025, revealing a nuanced picture of growth. While the core lending business demonstrated strength, the Group’s overall Profit After Tax (PAT) growth was modest due to a significant drop in non-interest income and persistent challenges in asset quality.

The Group’s performance was underpinned by strong growth in Net Interest Income (NII) and robust loan book expansion. NII grew by a substantial +12% to Ksh. 104.3 billion, reflecting effective margin management and increased lending activity. The Loan book expanded by +8% to Ksh. 1.1 trillion, driving the Group’s key revenue line.

However, this core success was offset by two main factors:

• Non-Interest Income (NII) Decline: Non-interest income, typically derived from fees, commissions, and foreign exchange (FX) earnings, fell sharply by -10% to Ksh. 45.1 billion. Market analysts attribute this primary to reduced FX trading volumes and tighter margins, a common trend in the banking sector following a period of currency volatility stabilization.
• Modest Profit Growth: Consequently, Profit After Tax (PAT) only grew by a small +3% to Ksh. 47.3 billion, leading to almost flat Earnings Per Share (EPS) growth of +0.6% (KES 19.12).

Asset quality remains a critical area of focus for the Group. Gross Non-Performing Loans (NPLs) increased by +3% to Ksh. 222 billion, signaling sustained pressure on borrowers across key sectors like construction and trade.

In response, Loan Loss Provisions saw a corresponding increase of +3% to Ksh. 18.3 billion. While the growth rate for provisions matches the NPL increase, the high absolute figure indicates the continued cost of managing distressed assets. Furthermore, total Deposits saw a slight decline of -1% to Ksh. 1.5 trillion, suggesting tight liquidity conditions and competitive deposit-taking environments.

The standout success of Q3 2025 was the extraordinary performance of KCB Group’s non-banking subsidiaries. These entities are proving to be essential diversifiers and profit drivers, effectively cushioning the modest growth in the main banking unit.

Key Subsidiary Contributions:

• Subsidiaries, excluding KCB Bank Kenya, contributed a significant 35.0% of overall Group PBT (Profit Before Tax).
• They also account for 31.3% of the Group balance sheet.

The growth in the investment and asset management arms was particularly exceptional:

This strategic diversification into non-lending financial services showcases a deliberate and successful effort by KCB Group to build resilience against cyclical volatility in the core banking market.

KCB Group Q3 2025 key financial highlights