KCB Group reports 49% jump in half-year earnings

Kenya's leading bank by asset size, KCB Group, has reported a remarkable 49 per cent growth in earnings, with a profit after tax of Ksh45.8 billion for the third quarter of 2024. In an exclusive interview with CNBC Africa's Aby Agina, KCB Group CEO Paul Russo discussed the factors behind this impressive performance. Russo highlighted the significant growth in net profits and revenue, attributing it to the successful strategies implemented in the regional businesses. One key strategy was the creation of a leadership role specifically dedicated to overseeing the regional operations, ensuring their active participation in decision-making and strategy development. Board decisions on governance also played a crucial role in empowering local leaders within the subsidiaries to drive performance. Russo expressed pride in the quality of leadership within the subsidiaries, emphasizing the deep alignment and connection with the shared strategy. Despite the overall positive performance, Russo acknowledged the potential for further growth in markets outside Kenya, particularly in Rwanda, Tanzania, and the DRC. He underscored the importance of leveraging digital tools to support MSMEs and identified them as a key area for future growth. Additionally, the impact of the business environment on the loan book was discussed, with Russo acknowledging the slowdown in private sector lending in Kenya. He stressed the need to find solutions to boost private sector lending and highlighted the importance of actively managing non-performing loans to maintain the quality of the loan book. Russo expressed confidence in the resilience of the bank and its ability to navigate challenges by making agile decisions supported by strong leadership. The interview provided valuable insights into KCB Group's strategic approach to sustaining growth and navigating the evolving economic landscape.