KCB Group announces Sh11.1 billion total dividend payout to shareholders for the financial year, 2019
KCB Group PLC has announced a Shillings 11.1 billion total dividend payout to shareholders for the financial year ended 31st December 2019, an increase from the Sh10.7 billion dividend paid out in 2018. KCB Group Chairman, Andrew Kairu made this announcement during the bank’s Annual General Meeting held virtually in compliance with the Ministry of Health’s COVID-19 guidelines restricting physical gatherings.
Despite the challenging economic conditions witnessed in the various markets in 2019, KCB Group delivered improved profitability and higher returns to shareholders averaging a return on equity of 20.7%. Shareholders’ equity was up 14.1% from KShs113.7 billion in 2018 to KShs.129.7 billion.
The shareholders approved the board’s recommended final dividend payout of KShs. 8,033,000 for every ordinary share of KShs. 2.50. An interim dividend of KShs. 1.00 per share (KShs. 3,066,000) was declared and paid in November 2019 bringing all the payout to KShs. 3.50 per share representing KShs. 11,099,000. The dividend will be paid on or before July 3, 2020, to shareholders on the register as of the close of business on April 27, 2020, and would be subjected to withholding tax at the rate of 5% for residents and 10% for non-resident shareholders.
The electronic meeting attendees were able to register, access, vote, ask questions, and seek clarifications pertaining to the bank’s 2019 Integrated Report and Audited Consolidated Financial Statements. According to a statement released, the group posted a 5% jump in profit after tax to Kenya Shillings 25.2 billion as compared to the 2018 financial year’s Kenya Shillings 24 billion.
Looking into the future, the KCB Board Chairman said the group foresees strong growth in an improved macroeconomic environment, especially in Kenya, and is focused on continually supporting its stakeholders, especially during 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 recognize that our actions during this pandemic are essential in keeping our economies across the region going,” said Mr. Andrew Kairu.
“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 added.
KCB Group PLC CEO, Mr. Joshua Oigara on his side, said the company has prepared itself to operate under the current global adverse circumstances to conserve the capital, manage costs and keep a keen eye on the bank’s liquidity in order to benefit the group’s customers and shareholders.