KCB reports $530 million profit after NBK sale lifts earnings

KCB Group, East Africa’s largest lender by assets, has reported KES 68.4 billion ($530 million) net profit for 2025 as cost cuts and gains from the sale of National Bank of Kenya (NBK) to Nigeria’s Access Bank helped lift earnings despite slow revenue growth and persistent loan defaults.

The Group increased profit by 11% from a year earlier, even as total income rose just 4%, signalling that expense reductions and one-off gains played a larger role in driving earnings than core business expansion.

The results reflect how Kenyan banks are leaning on cost discipline and balance sheet restructuring to sustain profits as borrowers struggle with high interest rates and slower economic growth.

Operating costs fell about 3% to KES 90.5 billion ($698 million) after KCB completed the sale of NBK in May 2025 and tightened spending across its regional operations. The divestiture also resulted in a KES 3.18 billion ($24.5 million) gain recorded under other income. 

Despite the disposal, the group’s balance sheet continued to grow. Total assets rose 9.3% to KES 2.15 trillion ($16.6 billion), while gross loans increased 16% to KES 1.25 trillion ($9.7 billion). 

Customer deposits climbed 15% to KES 1.59 trillion ($12.3 billion), reinforcing the lender’s funding base across its East African markets.

Digital lending and mobile transactions remained a key driver of activity. Loans issued through mobile channels rose 30% to during the year, equivalent to roughly KES 1.1 billion ($8.5 million) disbursed daily. 

Nearly all customer transactions now take place outside branches, as the bank pushes more services through mobile and online platforms. 

KCB’s regional diversification continued to shape its earnings profile. Subsidiaries outside Kenya accounted for roughly 30% of the group’s balance sheet and profits, underscoring the bank’s push to grow across East and Central Africa amid intensifying competition in its home market. 

The board proposed a final dividend of KES 3 ($0.023) per share, bringing the total payout for the year to KES 7 ($0.054) per share, equivalent to KES 22 billion ($170 million) returned to shareholders.