Commercial Banks in Kenya have declared they will pay out dividends to shareholders after registering higher profits in 2021. The banks presented 2021 Full Year Financial Results this week.
KCB Bank reported a 74 per cent growth in income to Kshs 34.09 billion in 2021 driven by lower loans loss provisions, higher interest income from loans and increased customer deposits. KCB Bank declared a final dividend of Kshs 2 per share which amounts to Ksh 6.43 billion of net earnings. An interim dividend of Kshs 1:00 was paid out in January 2021. This brings the total dividends payout to Kshs 3:00 per ordinary share, which is Kshs 9.64 billion of the net earnings. KCB Bank has tripled its dividend payout to Ksh 9.64 billion for 2021.
The Cooperative Bank of Kenya reported an increase in profit after tax by 53 per cent to Kshs 16.5 billion in 2021 from Kshs 10.8 billion in 2020. The dividends per share to be paid out to Coop Bank shareholders is Ksh 1:00. The dividend of Kshs 1:00 has remained unchanged in Financial Year 2020 and 2021.
Absa Bank Kenya reported a 161 per cent increase in net earnings to Ksh 10.9 billion during the financial year ended 31st December 2021. Absa declared a dividend payout of Ksh 1.10 per ordinary share for the period compared to zero dividends in 2020.
Standard Chartered Bank reported 66.2 per cent growth in net profit to Kshs 9 billion in the year ending December 31st 2021. The Board of Standard Chartered Bank will be recommending to the shareholders the payment of a final dividend of KShs 14.00 for every ordinary share of KShs 5.00 at the forthcoming Annual General Meeting. An interim dividend of KShs 5.00 was declared and paid in December 2021. This will bring the total dividend for the year to KShs 19.00 per ordinary share which is 81% higher than that paid in 2020.
Stanbic Bank registered a 38.8 per cent increase in net profit to Ksh 7.2 billion. The growth in earnings was driven by higher net interest income by 12.3 per cent to Kshs 14.4 billion and lower loan loss provision by 48.2 per cent to Kshs 2.5 billion. Stanbic declared a final dividend payout of Kshs 9 for the financial year ending on December 31st 2021. This is more than double the dividend of Kshs 3.8 paid out in 2020.
The payment dates of shareholders’ dividends are subject to approval by the respective boards in those banks.
