KCB investors set for Sh6.4b dividend as profit hits Sh40.8b

When former National Treasury Principal Secretary Julius Muia, Cabinet Secretary Ukur Yatani, KCB Group Chairman Andrew Wambari Kairu, and KCB Group CEO and Managing Director Joshua Oigara handed over a dividend cheque handover to the National Treasury. [File, Standard]

KCB Group shareholders are set to take home a total of Sh6.4 billion in dividends after the lender posted a 19.5 per cent jump in net earnings.

KCB Group posted Sh40.8 billion in profit after tax for the full year ending December 2022, riding on higher funded and non-funded income streams.

The bank recorded Sh34.2 billion in net earnings a year earlier.

KCB said on Wednesday its regional expansion paid off after its subsidiaries, excluding KCB Bank Kenya, recorded a bump in contribution to earnings to 17 per cent - up from 13.9 per cent in 2021 - riding on organic growth and increased scale through BPR Bank Rwanda and Trust Merchant Bank (TMB), the newest DRC-based subsidiary of KCB Group.

"The business benefited from a vibrant core banking business, growth of new business lines and accelerated digital transformation to post this record performance," said KCB Group Chief Executive Paul Russo in a statement.

"Overall, we have positive momentum, and we shall build on this and ensure that we make significant step change in culture and performance, across all our business units."

Total income surged 19.6 per cent to Sh129.9 billion, driven by net interest income which grew by 11.5 per cent, supported by earning assets and partially offset by an increase in interest expenses from higher costs of borrowing and interbank market rates.

Its non-funded income grew 39.8 per cent largely from trade finance income, lending fees and commissions.

Costs were up 24.1 per cent compared to last year on account of increased business activities and the impact of BPR and TMB acquisitions.

The board has proposed a final dividend payout of Sh1 per share, subject to shareholder approval. This is in addition to an interim payout of Sh1 per share which was paid out in January 2023.

This brings the total dividend payout for the year to Sh6.4 billion.