The Treasury is set to earn Sh191 million ($1.9 million) in dividends from a regional bank in which it owns 8.64 per cent stake.
The Eastern and Southern African Trade Development Bank (TDB Bank), previously known as PTA Bank, posted Sh10.4 billion ($101.5 million) in profits after tax for the year ended December 2016. This was seven per cent growth in comparison with 2015.
Shareholders are reaping the benefits of positive performance as dividends per share rise from Sh31,000 ($301.35) to Sh31,278 ($304.21) per share.
Among the banks shareholders are 18 member states of the Common Market for East and South Africa (Comesa). The bank’s role is to provide trade financing and support infrastructure projects among the member states of regional economic bloc.
“Our bank managed to grow its loan assets 11 per cent year-on-year. Indeed, it is difficult years and challenging times that we seek to step up our commitment and pick up some of the slack left by international commercial banks,” said TDB Bank’s chief executive, Admassu Tadesse.
The bank grew its interest income from Sh21.5 billion ($208.7m) to Sh23.2 billion ($225.2bn. At the same time, the bank’s interest expenses fell. Kenya, with 8.64 per cent stake, is one of the bank’s largest shareholders.