KCB Group PLC has announced a sh11.1 billion total dividend payout to shareholders for the 2019 financial year, breaking apart from the rest of the banking and financial sector players.
The shareholders approved a final sh2.50 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 today 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 sh3.50 the total dividend for the year, taking into account an interim dividend of sh1.00 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 KCB is focused on continually supporting its stakeholders through the ongoing global COVID-19 pandemic.
In 2019, KCB Group posted a 5 per cent jump in profit after tax to sh25.2 billion. Last month, KCB reported sh6.3 billion in profit after tax in the first quarter of 2020 ending March. This was an 8 per cent jump from the sh5.8 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.
He noted that the organization has prepared itself to operate under these adverse circumstances to the benefit of their 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