- Kenya Commercial Bank (KCB) has approved an $82.5 million total dividends pay-out for the 2021 financial year
- This comes after the company recorded a 74% rise in its profit after tax to hit $292.8 million for the full year ending December 2021
- The lender’s shareholders approved a final dividend of KSh 2.00 ($0.017) per share as recommended by the board
Kenya Commercial Bank (KCB) has approved a KSh 9.64 billion ($82.5 million) total dividends pay-out for the 2021 financial year, months after recording a 74% rise in its profit after tax to hit KSh 34.2 billion ($292.8 million) for the full year ending December 2021.
The lender’s shareholders approved a final dividend of KSh 2.00 per share as recommended by the board. According to the company, the dividend shall be paid on or before July 7, 2022, net of withholding tax to the shareholders who were on the register of members at the close of business on April 25, 2022.
KCB Group Chairman Andrew Wambari Kairu told shareholders that in spite of the challenging business environment in 2021, the business continued to generate returns for its shareholders.
“The Group made significant progress with our strategic priorities and delivered strong business and financial returns. This performance affirms the robustness of all other important aspects of our business, including customer excellence, employee commitment, sustainability, and digital solutions, just to mention a few,” Kairu said.
“Moving forward, we are determined to sustain this momentum targeting to maintain return on average equity above 20% as our operating environment continues to improve,” he added.
KCB currently has 193,724 shareholders with a majority at 89 per cent being local individual and institutional investors while 11 per cent are foreign investors. In 2021, the total shareholder return was 27 per cent significantly above the average inflation rate.
The announcement comes days after the company’s profit after tax surged by 54.6 per cent to KSh 9.9 billion in the three months ending March 2022, up from KSh 6.4 billion a similar period last year.
KCB attributed the improved performance to growth in total income and reduction in loan loss provision.
During the period, revenues increased by 26 perc ent to KSh 29.0 billion on account of an increase in interest income, an increase in non-funded income from lending activities and service fees and a 21.1% rise in earning assets.
Outgoing group CEO Joshua Oigara said the business showed sustained resilience backed by the bank’s proactive approach towards driving income growth, managing liquidity, conservation of capital, and cost containment.
“A relentless focus on our strategy has enabled us to maintain robust asset growth and deliver a healthy return on our investments. We have effectively demonstrated our combined abilities and competencies in managing and responding to the impact of the healthcare crisis across all our markets,” he said.
Oigara leaves KCB
In a separate story, The Exchange Africa recently reported the appointment of Paul Russo as the company’s Group Chief Executive Officer (GCEO) effective May 25, 2022.
Russo has replaced Oigara who has been the GCEO for the last nine and a half years. KCB reported that Russo brings a wealth of experience in banking, operational management, people management, strategy, and sharp business acumen.
Prior to the appointment, Russo has been the Managing Director of National Bank of Kenya and the KCB Group Regional Business Director. He has over 20 years of work experience spanning executive and key roles including Group Human Resources Director, KCB Group Plc.
The board noted that Russo has consistently been a great leader of outstanding performance. Over the past 8 years while at KCB, he has been involved in the running of key strategic assignments within the Group business, lately looking after the regional businesses (KCB’s businesses in Tanzania, Rwanda, Burundi, Uganda, South Sudan as well as KCB Capital and KCB Bancassurance Intermediary) and National Bank of Kenya.
“He is therefore the right person for the job and will take the Group to the next level in its growth ambitions to become the undisputed regional leader and drive much-needed business transformation for greater impact of economies and communities around us,” said Kairu.