In the past few weeks, several Tier-1 banks in the country including KCB, Equity Bank, Co-operative Bank and NCBA all announced historic profit increases in 2021 as they declared their full year results.
And with it comes hefty dividend payouts, particularly for the largest shareholders in the institutions.
NCBA for instance saw its profits increase by more than double to Ksh10.22 billion up from Ksh4.57 billion the previous year. The bank announced a dividend per share of Ksh3 for the year to December 2021.
Leading the pack in dividend payouts this year is the family of President Uhuru Kenyatta, which controls a 13.2% stake in NCBA. They will receive Ksh652.5 million in dividends for the year.
Former Central Bank Governor Philip Ndegwa’s family is also a major shareholder in NCBA Group with an 11.7% stake in the bank. They will pocket Ksh580.8 million in dividends for the year.
Equity Bank was another which recorded a record-breaking performance. Profit after tax increased by 99% to Ksh40.1 billion from Ksh20.1 billion the previous year.
READ>>Equity Profits Soar 99% to Ksh40.1 Billion
In a trend replicated across the sector, growth was driven by lower credit impairment provisions and accelerated recovery from the impact of Covid-19.
Equity Bank CEO Dr. James Mwangi, who holds a 3.4% stake in the bank, will be expecting a massive Ksh383.4 million dividends pay-out for the year.
Equity recommended a dividend payout of Ksh3 per share following the impressive 2021 results.
Mwangi’s total stake in Equity is currently valued at Ksh6.52 billion making him one of the largest individual investors at the Nairobi Securities Exchange (NSE).
Co-operative Bank CEO Gideon Muriuki is another executive with skin in the game. He holds a 1.75% stake in Co-op Bank and will receive Ksh102.68 million in dividends.
Co-op Bank recorded their strongest performance ever in 2021 as net profit rose to Ksh16.5 billion up from Ksh10.8 billion in 2020.
The bank maintained a dividend per share of Ksh1, same as the previous year.
READ>>Co-op Bank Posts Ksh22.6B Profit in Their Best Year Ever
