KCB Group shareholders have approved Ksh3.2 billion in final dividend payout for the 2022 financial year. This will bring the total dividend paid for the year to Ksh6.4 billion, following a Ksh3.2 billion in interim dividend declared at the end of last year.
The shareholders approved a final dividend of Ksh1.00 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 Ksh40.8 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.
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.
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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.”
KCB Group posted Ksh9.8 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 Ksh1.63 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. KCB 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.
To avail more lending to this key segment, the Bank revised terms for key products for working capital as well as asset-based finance. It also enhanced digitization and automation of the lending process including deployment of pre-scoring models to shorten the swim-lane in credit processing.
Meanwhile, the shareholders also approved the appointment of two directors to the Group’s Board — Ms Anuja Pandit, and Dr Joseph Kinyua to fill in casual vacancies.
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