KCB declares interim dividend as profit doubles to Sh25bn

kcb kipande

A KCB bank branch at Kipande House, Nairobi. PHOTO | DENNIS ONSONGO | NMG

KCB Group #ticker:KCB has declared an interim dividend of Sh1 per share after its net profit more than doubled to Sh25.1 billion in the nine months ended September.

The lender becomes the second to declare a surprise interim dividend for the third quarter after Standard Chartered Bank Kenya #ticker:SCBK which has proposed a payout of Sh5 per share after its net income surged 46.6 percent to Sh6.3 billion.

“The directors have approved an interim dividend of Sh1 for every ordinary share. The dividend will be paid on or about Friday, January 14, 2022, to shareholders on the register at the close of business on Thursday, December 9, 2021,” KCB said in a statement.

The bank’s net income rose 131.1 percent from Sh10.8 billion in the first nine months of last year, with the lender benefitting from higher interest income.

Its loan book expanded 12.8 percent to Sh651.8 billion, lifting total interest income 16.1 percent to Sh73.5 billion.

“This is the strongest quarter for us since the Covid-19 pandemic struck 20 months ago, with clear signs of economic recovery across key sectors,” chief executive Joshua Oigara said in a statement.

“While we are cautiously optimistic of the prospects, especially due to the dynamic nature of the healthcare crisis, we project that the worst is behind us.”

He added that KCB is close to concluding its acquisition of African Banking Corporation Tanzania Limited (BancABC Tanzania).

KCB recently completed its buyout of Banque Populaire du Rwanda (BPR). London-based Atlas Mara Limited signed agreements to sell the two banks to the Kenyan lender.

“This twin acquisition will bolster the group’s market share in these two key markets and grow the contribution of international businesses to the group,” KCB said in a statement.