Kenya’s banking sector continues to demonstrate resilience and profitability, with major lenders reporting significant growth in after-tax profits for the 2024 financial year.

Despite economic uncertainties, the sector capitalised on high lending rates, increased transaction volumes, and improved cost management strategies.

Key Profit Figures for 2024

Kenya’s top banks posted remarkable profit gains, with some recording double-digit growth compared to the previous year. Below is a breakdown of how they performed:

• KCB Group: Profit surged by 65% to Sh62 billion, making it the most profitable bank in the country.
• Equity Group: Registered a 12% increase to Sh49 billion, maintaining its stronghold as a leading lender.
• Co-operative Bank: Grew by 10% to Sh25.5 billion, driven by its focus on cooperative banking.
• Standard Chartered Bank: Saw a 45% jump to Sh20 billion, benefiting from a rise in corporate lending.
• NCBA Group: Posted a 2% increase to Sh22 billion, reflecting stable operations despite economic headwinds.
• Absa Bank Kenya: Grew by 28% to Sh21 billion, leveraging digital banking solutions.
• Stanbic Bank Kenya: Recorded a 13% rise to Sh13.7 billion, supported by forex gains and loan book expansion.
• I&M Bank: Profits climbed 22% to Sh15.4 billion, demonstrating improved efficiency.
• Diamond Trust Bank (DTB): Increased by 13% to Sh7.6 billion, benefiting from regional operations.
• HF Group: Reported a 35% increase to Sh524 million, signalling a turnaround in its mortgage-focused business.

Meanwhile, Sidian Bank made a remarkable recovery, swinging to a Sh287 million profit after recording a Sh448 million loss in 2023. This turnaround highlights a strategic shift that improved its financial standing.

READ ALSO:

Liberty Kenya’s 2024 Financial Results Reveal Record Growth

Drivers of Profit Growth

Several factors contributed to the impressive earnings across the banking industry:

1. High Lending Rates: Banks capitalised on higher interest rates, leading to increased net interest income.
2. Growth in Digital Banking: The rise in mobile and internet banking transactions provided new revenue streams.
3. Improved Asset Quality: Reduced loan impairments and better credit risk management helped stabilise balance sheets.
4. Expansion into Regional Markets: Many banks continued expanding beyond Kenya, tapping into new opportunities in the East African region.
5. Cost Optimisation Strategies: Enhanced efficiency and cost-cutting measures contributed to higher profitability.

READ ALSO:

I&M Bank Rwanda reports impressive 74% profit growth in 2024

Outlook for 2025

With Kenya’s economy showing signs of steady growth, banks are expected to continue leveraging technology, strategic partnerships, and financial inclusion initiatives to sustain profitability. However, inflation, currency fluctuations, and regulatory changes could pose challenges.

As the sector gears up for another financial year, investors and stakeholders will closely monitor how these banks navigate economic shifts while maintaining their strong earnings momentum.

Kenya’s banking sector has once again proved its resilience, delivering impressive profit growth in 2024. With strategic investments in digital banking, regional expansion, and cost efficiency, the future looks promising for the country’s financial institutions. Stay tuned for further insights into the evolving banking landscape!