Advertisement KCB Group PLC Q1 Profit Rises 15.3% to KShs. 24.4 BillionStrong Revenue Growth Boosts Q1 PerformanceKCB Group PLC has reported a 15.3 percent rise in pre-tax profit for the first quarter ending March 31, 2026. The lender posted KShs. 24.4 billion compared to KShs. 21.2 billion recorded during a similar period last year.The strong performance was driven by growth across regional subsidiaries, higher customer activity, and expansion in interest-earning assets. This came despite a challenging business environment marked by lower interest rates across East Africa.Total operating income increased by 8.5 percent to KShs. 53.6 billion. The growth was supported by expansion in interest-bearing assets, even as net interest margins declined following rate cuts by regional regulators.The Groups balance sheet expanded by 10.8 percent to KShs. 2.3 trillion. Customer deposits also rose by 15.7 percent due to increased activity across key business segments.Excluding the impact of National Bank of Kenya, which the Group divested from in May 2025, pre-tax profit and operating income grew by 17 percent and 16 percent respectively.Regional subsidiaries continued to strengthen the Groups earnings. Businesses outside KCB Bank Kenya contributed 29.5 percent of total earnings and accounted for 31.5 percent of the balance sheet.The Groups non-banking subsidiaries also posted steady performance. KCB Bancassurance Intermediary recorded KShs. 209 million in profit before tax, while KCB Investment Bank and KCB Asset Management posted KShs. 274 million and KShs. 64 million respectively.Digital Lending and Forex Income Support GrowthGroup Chief Executive Officer Paul Russo said the lenders performance reflected disciplined execution and continued investment in innovation.Despite the challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our unwavering commitment to providing financing which catalyzes economic transformation across the region, said Russo.He noted that although East Africa remained resilient, the ongoing Middle East conflict continued to affect economies through weaker credit demand, higher risks, lower remittance inflows, and pressure on deposits.Non-funded income rose by 8.3 percent to KShs. 17 billion. The growth was supported by increased digital loan disbursements and higher foreign exchange income as businesses sought financing for trade and working capital needs.At the same time, total operating costs grew by 7.3 percent to KShs. 24.3 billion. The increase was linked to higher workforce expenses, technology investments, and business expansion costs.KCB Group PLC Q1 Profit Rises 15.3% to KShs. 24.4 BillionImproved Asset Quality Strengthens Balance SheetKCB also recorded improvements in asset quality across its subsidiaries. The non-performing loan ratio dropped to 16.6 percent from 19.3 percent reported during the same period last year.The stock of non-performing loans declined to KShs. 217.8 billion from KShs. 233.3 billion. This was supported by aggressive recovery efforts and a 9.1 percent growth in the gross loan book.The Group continued to maintain prudent provisioning measures amid prevailing economic risks. It set aside KShs. 4.9 billion to cushion against possible loan losses.Customer deposits rose by 16 percent to KShs. 1.7 trillion, driven by onboarding of new retail and corporate customers. Meanwhile, the gross loan book increased to KShs. 1.32 trillion from KShs. 1.21 trillion recorded last year.KCB posted a Return on Equity of 21.5 percent. Shareholders equity also increased by 18.5 percent to KShs. 352.2 billion, while earnings per share rose to KShs. 22.18 from KShs. 20.03.Sustainability and Shareholder Value Remain Key FocusThe Group maintained strong capital buffers, with all banking subsidiaries remaining compliant with local regulatory requirements. Group core capital stood at 18.2 percent against the statutory minimum of 10.5 percent, while total capital to risk-weighted assets stood at 21.6 percent.The lender also maintained a strong liquidity ratio of 51.1 percent, positioning the Group to respond to emerging opportunities and market risks.Group Chairman Joseph Kinyua said the strong start to the year reflected the strength of the Groups long-term strategy and regional diversification.The Groups strong start to the year is a clear affirmation of the effectiveness of our long-term strategy, the resilience of our regional businesses, and the discipline with which we continue to execute our priorities, said Kinyua.Beyond financial performance, the Group continued to invest in sustainability and community initiatives.In January, KCB Foundation partnered with UNHCR to support financial inclusion and economic opportunities for refugees and host communities.In March, KCB Bank Kenya secured KShs. 12.5 billion in financing from the Green Climate Fund to support green projects targeting MSMEs and farmers.The lender also sponsored the 2026 WRC Safari Rally, investing KShs. 227 million into the global motorsport event.KCB Bank Kenya recently introduced a KShs. 20 flat fee on Pesalink transfers while waiving charges for transfers below KShs. 1,000 under the Tuma Direct na 20/- campaign.The post KCB Group PLC Q1 Profit Rises 15.3% to KShs. 24.4 Billion appeared first on Africa Business News.