KCB Announces Biggest Interim Dividends After Recording KSh 29.9b Profits After Tax

• KCB Group reported a 6% increase in assets to KSh 1.98 trillion in the first half of 2024, and profit after tax grew by 86%, reaching KSh 29.9 billion
• Group MD Paul Russo credited the performance to the bank's focus on supporting customers and economic recovery efforts despite challenges in the operating environment
• KCB Group's subsidiaries across East Africa contributed significantly, accounting for 37.8% of pre-tax profits and 34.4% of total assets
• KCB Group's board recommended an interim dividend payout of KSh 4.8 billion, marking the largest interim dividend in the bank's history

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

KCB Group released the financial results for the first half of the financial year 2024.

In the first half of the year, KCB Group experienced a 6% growth in its assets, reaching KSh 1.98 trillion.

Additionally, the bank's net earnings witnessed a significant surge of 86%, reaching KSh 29.9 billion.

These notable achievements can be attributed to the bank's active commitment to customer support and its efforts towards economic recovery.

In an event attended by TUKO.co.ke, the Group Managing Director Paul Russo ascribed the notable profitability to the substantial increase in revenue across both funded and non-funded revenue streams.

"We delivered a commendable first half of the year, despite strong headwinds in the operating environment, especially in Kenya, thanks to the goodwill and confidence from our customers and the commitment of our staff,'' Russo said at Serena Hotel in Nairobi.

How much dividends will KCB pay?

The contribution by subsidiaries in various countries across the East African economic block, excluding KCB Bank Kenya, continued to increase, closing the half year at 37.8% of the pre-tax profits and 34.4% of the total assets.

KCB Group's strong performance led to the resumption of dividend payouts, with the board recommending a record interim dividend of KSh 4.8 billion to shareholders.

Joseph Kinyua, the chairman of KCB Group, commended the bank for its exceptional resilience and flexibility in effectively addressing both international and domestic obstacles.

These efforts have led to substantial increases in assets and enhanced capital adequacy ratios, which have resulted in the reinstatement of interim dividends for shareholders.

“This performance has enabled the Board to recommend an interim dividend of KSh 1.50 per share,” he said.

This is a relief to investors after the KCB Group paid zero dividends in the financial year that ended December 31, 2023.

KCB Group sustainability report

KCB released its 2023 sustainability report on Tuesday, highlighting its achievements.

During the period under review, the lender allocated 15% of the total loans to green initiatives, with KCB staff planting 314,129 trees in 1,423 schools.

The KCB 2jiajiri programme provided direct jobs to 13,352 people, and to date, 30,000 jobs have been created under the programme.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.