NCBA-IB names KCB stock a Buy at KES 110.51 target

Published on 10/05/2026 at 12:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half profit before tax rose 20.80 percent to KES 49.30 billion. NCBA-IB sets a KES 110.51 target for KCB stock in its September picks.

KCB, KE0000000315, Illustration mit AI erstellt.

KCB Group (ISIN KE0000000315) was the sole Buy in NCBA Investment Bank's September 2026 stock picks, with a KES 110.51 target, according to Soko Directory. The call followed first-half 2026 profit before tax of KES 49.30 billion, up 20.80 percent year over year.

Profit growth supports the target

KCB Group's first-half 2026 net profit reached KES 36.10 billion, compared with KES 31.50 billion in the same period of 2025. The comparison shows that profit after tax increased 14.60 percent, while profit before tax expanded faster as operating performance improved.

The stronger result also supported a larger shareholder distribution. The group raised its interim dividend to KES 3.00 per share from KES 2.00, a 50.00 percent increase, with total cash distribution of KES 9.64 billion, according to Streamline Feed.

Asset quality remains central

KCB's first-half 2026 gross non-performing loans fell by KES 17.30 billion, and the non-performing loan ratio declined from 18.70 percent in the first half of 2025 to 15.10 percent in the first half of 2026. That improvement gives the earnings advance a credit-quality component rather than leaving the result dependent only on balance-sheet expansion.

The group also reported total assets of KES 2.30 trillion for the first half of 2026, up 16.80 percent year over year. Its net interest income reached KES 74.00 billion, while non-funded income rose 15.40 percent to KES 34.10 billion, according to Boardlot.

KCB combines scale and income diversity

The investor-relations profile describes KCB Group as a holding company overseeing KCB Bank Kenya and regional subsidiaries. It lists 458 branches, 1,249 ATMs and 39 million customers, while the group profile shows total assets of KES 2.30 trillion, according to KCB Group.

The combination of higher profit, a 50.00 percent dividend increase and lower non-performing loan exposure explains why the September target centers on earnings durability and valuation rather than on a single quarter's momentum.

Investor reference points

KCB Group is listed on the Nairobi Securities Exchange under ticker KCB. Its first-half 2026 figures provide the latest operating reference for the September target, with profit before tax at KES 49.30 billion and net profit at KES 36.10 billion.