[Kenya] KCB shareholders approve KSh.11bn dividend payout
KCB Group has announced a KSh.11.1 billion total dividend payout to shareholders for the 2019 financial year, signifying a sustained return to shareholders amid a tough operating environment. Shareholders approved a final KSh.2.50 dividend per ordinary share as recommended by the Board at this year’s Annual General Meeting.
Due to the ongoing Government of Kenya COVID-19 restrictions on public gatherings, KCB Group hosted an electronic AGM where shareholders were able to register, access information pertaining to the 2019 Integrated Report and Audited Consolidated Financial Statements, vote, ask questions and seek clarifications.
The payout brings to KSh.3.50 the total dividend for the year, taking into account an interim dividend of KSh.1.00 per share paid out last November. The dividend will be paid on or before July 3, 2020 to shareholders on the register as of close of business on April 27, 2020.
KCB Group Chairman Andrew Wambari Kairu told shareholders that in spite of the tough business environment last year, the business continued to generate returns for its shareholders. Looking ahead, he said the bank is focused on continually supporting its stakeholders through the ongoing global COVID-19 pandemic.
''The crisis has seen the world confront its biggest health crisis this century. Our thoughts remain with the individuals and communities affected by the pandemic. We as recognize that our actions during this pandemic are essential in keeping our economies across the region going. We have incorporated guidelines provided by the Government and adopted a raft of measures to cushion our staff, customers and stakeholders from the effects of the disease,'' he said.
In 2019, KCB Group posted a 5% jump in profit after tax to KSh. 25.2 billion. Last month, KCB reported KSh.6.3 billion in profit after tax in the first quarter of 2020 ending March. This was an 8% jump from the KSh. 5.8 billion posted a similar period last year, driven by stronger non-funded income lines and interest income boost due to loan book growth.
The Group CEO and MD Joshua Oigara said under the current tough macro-economic environment, business performance is likely to be subdued in the second half of the year. ''With the likely continuation of the crisis into the currently unforeseeable future, we anticipate and expect that the ability of some customers to service their loans will be impacted, there will be reduced demand for credit and this may impact our business performance for the remainder of the year,'' he said.
''The organization has prepared itself to operate under these adverse circumstances to the benefit of our customers and shareholders. We have therefore taken measures to conserve our capital, manage costs and keep a keen eye on the banks liquidity,'' added Mr Oigara.