Profits – Shareholders at the Kenya Commercial Bank KCB Group will be sharing a distribution of sh 6.4 billion in dividends this year.
This is after another approval of a staggering sh 3.2 billion was made as final dividend payout for the financial year 2022.
At the end of last year, the group cleared a sh 3.2 billion in interim dividend and now with another sh 3.2 this brings it to sh 6.4 billion.
The shareholders approved a final dividend of sh 1.00 per share as recommended by the board at the 52nd Annual General Meeting (AGM) held on Thursday. The dividend will be paid on or about 26th May 2023 to shareholders in the register at the close of business on 6th April, 2023.
The dividend payment follows an impressive full year 2022 performance which saw the group post a 20% rise in net profit to sh 40.8 billion. Consequently, this raised the Group’s return on equity by 60 basis points to 23.0%, placing it among the highest at the Nairobi Securities Exchange NSSE.
KCB Group has undertaken an ambitious investment strategy aimed at achieving long- term growth and enhancing shareholder value. In 2022, the contribution of PBT from Group businesses, which excludes KCB Bank Kenya, stood at 17.0% (up from 13.9%) driven by BPR Bank, KCB Bank Tanzania, and KCB Bank Uganda.
In the Q1 2023 results released on Wednesday, the contribution increased further to 35% as investments in regional businesses continued to pay off, with the consolidation of Trust Merchant Bank (TMB), the Group’s newest subsidiary in the Democratic Republic of Congo.
In December, the Group successfully acquired TMB as part of its ongoing strategy to increase its regional presence, accelerate growth and build scale for regional relevance. KCB acquired 85% of the shares of TMB with the existing shareholders holding the balance for a period of not less than two years, after which KCB may acquire them.
Retaining the existing shareholders in the business post-acquisition is advantageous to KCB as it provides management and business continuity to TMB’s stakeholders in the DRC market.
“We have in place a robust strategy that enables us to prudently deploy our capital and resources across the region to ensure superior returns from our investments,” said KCB Group Chairman, Mr Andrew Wambari Kairu. “We are bullish about 2023 and are gearing up to maximize on all the opportunities that are available in our various markets,” a statement read.
KCB Group posted sh 9.8 billion in profit after tax for the first quarter 2023, supported by increased revenues. The Group recorded a strong balance sheet growth, with total assets hitting sh 1.63 trillion.
Shareholders also approved the appointment of two directors to the Group’s Board.
KCB Group CEO Paul Russo said the bank had maintained a steady growth in core indicators and it had continued to deepen support to the micro, small and medium sized enterprises (MSME) which, Mr Russo said, power the bulk of the businesses across the region.
