Banking –The family of former President Uhuru Kenyatta will be smiling all the way to the bank as it is set to earn a dividend of around sh 835 million for its 13.2% stake in NCBA Group.
This is after the bank announced a dividend per share of sh 4.25 for the 2022 full year, up from sh 3 the previous year.
The bank explained that this increased payout follows the bank’s growth in profit after tax, from Ksh10.22 billion in 2021 to sh 13.78 billion in 2022 – representing a 34.77% increase.
Others set to reap big in dividends include the Ndegwa family, with its 11.7% stake in the company. The Ndegwas will get around Ksh740 million in dividends.
“The (final) dividend will be payable to the shareholders registered on the company’s register at the close of business on April 28, 2023, and will be paid on or after May 31, 2023,” the bank noted.
NCBA stepped up lending in 2022, growing its loan book by 14.29% to sh 278.92 billion up from sh 244.04 billion the previous year. Its total assets grew to sh 619.66 billion from Ksh591.09 billion in 2021 – with customer deposits increasing by 6.98% to hit sh 502.8 billion up from sh 468.89 billion in 2021.
The bank saw net interest income also increase to sh 30.68 billion up from sh 27.04 billion in 2021. Non-interest income grew to Ksh30.26 billion in 2022 compared to sh 22.11 billion the previous year.
The NCBA board recommended a final dividend of sh 2.25 per share. NCBA had in September last year paid out an interim dividend of Ksh2 per share, bringing the total dividend to Ksh4.25 per share amounting to Ksh7 billion, or 50.8% of net profit.
Besides local individual shareholders including the Kenyattas and Ndegwas who, for their combined 22.63% stake will receive a total of sh 1.58 billion, local companies, who hold a 76.97% in what is Kenya’s third-largest bank, will get a total of sh 5.39 billion dividends.
