NBK shareholders to get dividends after six years

Companies

NBK shareholders to get dividends after six years

KCB Group chairman Andrew Kairu and group managing director and chief executive Joshua Oigara (left) during the release of the lender’s full year results in Nairobi on March 12, 2020. PHOTO | DIANA NGILA | NMG 

KCB Group #ticker:KCB will offer National Bank of Kenya shareholders dividends for the first time in six years after reporting a 4.8 percent rise in net profits to Sh25.1 billion.

The lender said it grew both its net interest income and income from transaction commissions and other lines last year, keeping its dividends unchanged at Sh3.50.

It paid an interim dividend of Sh1, meaning National Bank owners who were given 147.3 million shares in KCB following its takeover will get Sh2.50 per share—pushing the total payout to Sh368.4 million.

KCB Group acquired National Bank through a share swap deal. KCB captured National Bank fourth quarter results in its earnings report.

KCB Group CEO Joshua Oigara said NBK helped them book a 26 percent jump in assets and a 28 percent growth in customer base and access to the coveted corporate banking customers.

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The lender’s assets stand at Sh898.5 billion from Sh714.3 billion moving it closer to the Sh1 trillion psychological mark for the country’s largest bank by assets.

“The key drivers for growth were the loan book growth of 17 percent to Sh535.4 billion — reflecting the strong lending pipeline primarily driven by retail and corporate banking customer segment—and the customer deposits growth to Sh686.6 billion. The main driver for this growth was acquisition of NBK,” Mr Oigara said.

The NBK book helped KCB grow its loans by 17.4 percent to Sh535.3 billion. This helped grow the lenders net income 14.9 percent to Sh56.1 billion.

But the bank’s non-performing loans nearly doubled to Sh63.3 billion last year from Sh32.6 billion a year earlier.

This could be linked to the historical unpaid loans at National Bank.

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