KCB Group shareholders have approved the payment of a total dividend of Ksh 9.64 billion ($83.1 million) following a 74% increase in profits for the year ended December 31, 2022 .
The final dividend of Ksh2 ($0.01) per share will be paid by July 7.
Shareholders will have received a total of Ksh3 ($0.02) per share this year after an interim dividend of Ksh1 was paid in January.
The payment was approved at the group’s 51st annual general meeting which took place electronically last week.
Chairman Andrew Kairu said that despite last year’s difficult business environment, KCB continued to generate returns for its shareholders.
“The group has made significant progress with our strategic priorities and has generated strong commercial and financial returns,” Mr. Kairu said. “This performance confirms the strength of all other important aspects of our business, including customer excellence, employee engagement, sustainability and digital solutions.”
The group’s net profit for 2021 was 34.2 billion Kenyan shillings ($294.82 million), compared to 19.6 billion Kenyan shillings ($168.96 million) in 2020, supported by an increase in revenue business operations and a more than 50% reduction in loan loss provisions.
The contributions of the regional subsidiaries to the net result increased to 13.7% against 13.6% over the year.
Contributions included Tanzania ($6.33 million), South Sudan ($8.03 million), Uganda ($2.36 million), Rwanda ($9.56 million) and Burundi ($4.54 million).
“Moving forward, we are committed to maintaining this momentum by targeting to maintain an average return on equity above 20% as our operating environment continues to improve,” Mr. Kairu said. The Group has 193,274 shareholders, of which 89% are local individual and institutional investors and 11% are foreign investors.
Last year, total shareholder return was 27%, well above the average inflation rate.
In the first quarter of this year, the group recorded a 54% growth in its net profit to 9.78 billion Ksh (84.31 million dollars), against 6.37 billion Ksh (54.91 million dollars). ) in the same period last year, largely supported by growth in both interest and non-interest income and a reduction in loan loss provisions.
“We are optimistic that business growth will improve in the remaining part of the year as economic fundamentals improve in the East African economy, despite global and security threats. other local developments,” Kairu said. “Our priority is to harness the economic drivers to accelerate the pace of recovery and growth.”
The group’s unaudited financial statements show a 26% increase in total revenue to Ksh29.03 billion ($250.25 million) from Ksh23.04 billion ($198.62 million) with total costs up 16.8% to 12.9 billion Ksh ($111.2 million) from 11.0.1 billion ($95.68 million) during the same period.
Net interest income earned on loans and government securities increased by 18% to Ksh 19.7 billion ($169.82 million) while unfunded income (NFI) or other income that of interest increased by 47.2.
The Group’s balance sheet increased by 19.3% to Ksh 1.2 trillion ($10.34 billion), following the acquisition and consolidation of Banque Populaire du Rwanda (BPR).
Last year (2021) KCB acquired a 62.06% stake in BPR from UK financial services conglomerate Atlas Mara Ltd (ATMA) and subsequently increased the stake to 76.67% by acquiring 14.61% additional shares of minority shareholders.
The transaction increased KCB’s assets by 15.4% to Ksh 1.13 trillion ($9.74 billion).
KCB has operations in Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan and a representative office in Ethiopia
He also wants to enter the Democratic Republic of Congo (DRC) as part of his pan-African expansion bid.