KCB Group Plc shareholders have approved Ksh. 3.2 billion in final dividend payout for the 2022 financial year, signifying a sustained return to shareholders.
This brings the total dividend paid for the year to Ksh. 6.4 billion, following a Ksh. 3.2 billion in interim dividend declared at the end of last year.
The shareholders approved a final dividend of Ksh. 1.00 per share as recommended by the Board at the 52nd Annual General Meeting (AGM) held on Thursday through electronic means. The dividend shall be paid on or about May 26, 2023, net of withholding tax to the shareholders on the members’ register at the close of business on April 6, 2023.
The shareholders also approved the appointment of two directors to the Group Board, Ms. Anuja Pandit, and Dr. Joseph Kinyua to fill in vacancies.
The dividend payment follows an impressive full year 2022 Group performance which saw the Group post a 20% rise in profits net of all expenses, provisions, and taxes to Ksh. 40.8 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.
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, 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 acquired TMB as part of its ongoing strategy to expand its regional presence, accelerate growth and build scale for regional relevance. KCB acquired 85% of the shares of TMB with the existing shareholders continuing to hold the balance for a period of not less than two years, after which KCB may acquire their shares. 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.
KCB Group Chairman Andrew W. Kairu said: “In the face of a challenging and volatile business landscape, the Group remained resilient, continuously delivering value to stakeholders, and solidifying the foundation of the enterprise. 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”
“We are bullish about 2023 and are gearing up to maximize on all the opportunities that are available in our various markets. We have continued to embed sustainable practices in all our business operations and strategy. The business is well aligned to drive green finance and accelerate our net zero ambitions while also supporting our citizenship agenda to deliver meaningful change in our communities,” he added.
KCB Group PLC posted Ksh. 9.8 billion in profit after tax for the first quarter 2023. The Group recorded a strong balance sheet growth; with total assets hitting KShs.1.63 trillion, rising on strong customer confidence, as focus shifted to supporting customers to navigate the hard economic environment while ring- fencing the business for prospects and growth.
KCB Group CEO Paul Russo said: “We have maintained a steady growth in all our core indicators which has culminated to an impressive performance both in balance sheet and in profitability. This was made possible by strong revenue momentum across the corporate and retail businesses. Our focus was on delivering value and support to our customers to help them navigate the tough economic environment, while driving revenue growth for the Bank through both funded and non-funded income lines.”