KCB Group today announced a Kshs. 9.2 billion total dividend payout to shareholders for the 2017 financial year, signifying a sustained return to shareholders amid a tough operating environment.
During the 2017 Annual General Meeting (AGM) held in Nairobi on Friday, shareholders approved a final Kshs. 2 dividend per ordinary share as recommended by the Board. This brings to Kshs.3 the total dividend for the year, taking into account an interim dividend of Ksh 1 per share paid out last October.
The dividend pot highlights the Bank’s resilience in key performance measures, with capital, liquidity and profitability remaining stable during the period.
“We continue to provide consistent value to our shareholders through our robust business model. This was catalyzed by the robust governance structure at the Group level which helped us weather the myriad challenges and led to improved underlying performance for the business,” said KCB Group Chairman Ngeny Biwott.
The Bank’s dividend policy, said the chairman, is to maintain a dividend payout of up to 50 per cent of profit after tax.
The dividend will be paid on or about June 29, 2018 to shareholders on the register as of close of business on April 30, 2018.
The Group reported a Return on Equity— a measure of how much profit a company generates with the money shareholders have invested—of 19.5% in 2017, one of the highest return of the banks listed on the Nairobi Securities Exchange (NSE).
KCB maintained stable ratings, with Global Credit Ratings (GCR) affirming KCB’s long term and short-term national scale ratings of AA (KE) and A1+ (KE) respectively. Moody’s Investor Services expects KCB to maintain a strong performance in a difficult financial services sector while S&P ratings agency affirmed the Banks’ B+/B long and short term rating with a stable outlook, which mirrors that of the Sovereign.
“These solid ratings have raised KCB’s profile globally and improved the Group’s standing among like-minded financing partners. We are optimistic that tangible benefits will accrue to our shareholders as we step up our cost management and accelerate innovation to achieve sustainable growth in 2018 and beyond,” said KCB Group CEO and MD Joshua Oigara.
“We have put in place measures to overcome current market challenges by optimizing the existing resources and increasing uptake of alternative channels by customers including mobile and agency banking,” he said.
In 2017, KCB Group posted a net profit of Kshs19.7 billion, indicating a flat growth having posted the same in 2016. The loan book and deposits expanded significantly by 10% to Kshs. 423billion and 11% to Kshs.500 billion respectively.
KCB said the Group’s future outlook remains positive based on strong capitalization and expectations of an economic rebound this year in its key markets.