Tuesday, November 15, 2022

KCB To Pay Ksh.3.2 Billion Dividends As Nine Months Profits Rise 21%

 



By Kepha Muiruri

KCB Group Plc is set to pay Ksh.3.2 billion in interim dividends representing a payout of Ksh.1 per share after posting a 21 per cent growth in third-quarter profits.

Earnings for the lender in nine months through to September 30 have hit Ksh.30.5 billion from Ksh.25.2 billion on higher income.

The Group’s total operating income has grown by 15.3 per cent to Ksh.92.1 billion from Ksh.79.9 billion with non-interest income rising the highest at 30.2 per cent to Ksh.30.6 billion.

“We are seeing strong revenue momentum across the corporate and retail business which positions us to meet our full-year outlook. Our focus has been on delivering value and support to our customers to help them navigate the tough economic environment,” said KCB Group CEO Paul Russo.

The higher other operating income was anchored on an 86.7 per cent growth in foreign exchange trading income which nearly doubled to Ksh.8.4 billion from Ksh.4.5 billion.

Net interest income for the bank has meanwhile grown by 9.2 per cent to Ksh.61.6 billion to Ksh.56.4 billion as net loans and advances to customers hit Ksh.758.8 billion from Ksh.651.8 billion in September 2021.

KCB’s customer deposits have meanwhile grown by 7.4 per cent to Ksh.922.3 billion from Ksh.859.1 billion previously.

KCB has nevertheless recorded a greater asset deterioration with gross non-performing loans (NPLs) stretching by 52 per cent to Ksh.149.3 billion from Ksh.98.1 billion a year ago.

The Group has nevertheless trimmed its cover for bad loans by 21.5 per cent to Ksh.7.3 billion from Ksh.9.3 billion.

In September last year, KCB declared a similar Ksh.1 per share/Ksh.3.2 billion dividend payout on the way to posting a Ksh.34.1 billion full-year profit for 2021.

KCB has recently begun considering paying an interim dividend at the three-quarters-of-a-year stage having taken a full-year view of its performance.

The lender which is the second largest by asset size in the region after Equity Group now has an asset base of Ksh.1.276 trillion.

KCB hopes to reach an asset base of Ksh.1.5 trillion in 2025.

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