KCB Group Plc, one of the leading financial institutions in East Africa, has announced that its shareholders have approved a final dividend payout of KShs. 3.2 billion for the 2022 financial year. This dividend payment signifies the sustained commitment of the company to provide returns to its shareholders.
Dividend Payment Details
The approved final dividend of KShs. 1.00 per share brings the total dividend paid for the year to KShs. 6.4 billion. This follows the declaration of a KShs. 3.2 billion interim dividends at the end of last year. The decision to pay the final dividend was made at the 52nd Annual General Meeting (AGM) of the company, which was conducted through electronic means.
The dividend will be paid to the shareholders on or about May 26, 2023, net of withholding tax. The eligibility for the dividend payment is based on the shareholders being on the members’ register as of the close of business on April 6, 2023.
Appointment of Directors
In addition to the dividend payout, the shareholders also approved the appointment of two directors to the Group Board. Ms. Anuja Pandit and Dr. Joseph Kinyua were appointed to fill in casual vacancies, bringing their expertise and experience to the company’s leadership.
Impressive Performance in 2022
The dividend payment follows an impressive full-year 2022 performance by KCB Group. The company posted a 20% rise in profits net of all expenses, provisions, and taxes, amounting to KShs. 40.8 billion. This significant increase in profits contributed to a 60 basis points rise in the Group’s return on equity, reaching 23.0%. This performance positioned KCB Group among the highest achievers at the Nairobi Securities Exchange.
Investment Strategy and Growth
KCB Group has been pursuing an ambitious investment strategy aimed at achieving long-term growth and enhancing shareholder value. In 2022, the contribution of profit before tax (PBT) from Group businesses, excluding KCB Bank Kenya, stood at 17.0%, driven by BPR Bank, KCB Bank Tanzania, and KCB Bank Uganda. The first quarter results of 2023 further showcased the success of this strategy, with the contribution increasing to 35%.
One of the notable achievements in KCB Group’s investment strategy was the acquisition of Trust Merchant Bank (TMB) in the Democratic Republic of Congo. This acquisition, which took place in December, allowed KCB to expand its regional presence, accelerate growth, and build scale for regional relevance. KCB acquired 85% of the shares of TMB, while the existing shareholders retained the remaining shares for at least two years.
KCB Group Chairman, Andrew W. Kairu, expressed satisfaction with the company’s performance and resilience in the face of a challenging business landscape. He emphasized the robust strategy that enables KCB to prudently deploy its capital and resources across the region, ensuring superior returns for its investments. He further reiterated the company’s optimism about 2023 and its commitment to driving sustainable practices, supporting communities, and achieving net zero ambitions.
Outlook for 2023
KCB Group is poised to maximize on the opportunities available in its various markets in 2023. The company’s business operations and strategy are aligned with driving green finance and accelerating net zero ambitions while also contributing to positive change in the communities it serves.
First Quarter 2023 Performance
The first quarter of 2023 proved to be strong for KCB Group as it posted a profit after tax of KShs. 9.8 billion. This impressive performance was supported by increased revenues and a growing balance sheet, with total assets reaching KShs. 1.63 trillion. The focus on supporting customers in navigating the tough economic environment played a crucial role in the Bank’s success.
Support for Micro, Small, and Medium-Sized Enterprises (MSMEs)
KCB continued to deepen its support for micro, small, and medium-sized enterprises (MSMEs) in 2022 and beyond. The Bank revised terms for key products related to working capital and asset-based finance to provide more lending to this vital segment. Additionally, digitization and automation of the lending process, including the deployment of prescoring models, have facilitated faster credit processing.
Sustainability is a core aspect of KCB Group’s strategy. The Bank has been actively supporting the transition to clean energy and has incorporated environmental and social due diligence (ESDD) screening for projects above KShs. 50 million. By screening facilities for environmental and social risks, KCB ensures that its operations align with sustainable practices.
Impact through KCB Foundation
KCB Foundation, the corporate social investment arm of KCB Group, continues to make a significant impact in the communities across all the markets where the Bank operates. The foundation scaled its flagship program, 2jiajiri, to support youth empowerment, provided humanitarian support, and expanded its education scholarship program.
KCB Group’s shareholders have approved a substantial final dividend payout for the 2022 financial year, demonstrating the company’s commitment to delivering value to its shareholders. The company’s impressive performance, investment strategy, and sustainable practices have positioned it as a leader in the financial sector. KCB Group remains focused on maximizing opportunities, supporting customers, and contributing to positive change in the communities it serves.