The Kenya Commercial Bank (KCB) has announced it will pay its investors an interim dividend of three billion Kenya shillings (UgShs104.3b).
This follows the half year financial results which saw the lender post Shs356.8billion net profit for the first half ending June 2017. This, the bank, says, was buoyed by a strong performance of its core retail and corporate business, non- interest income and lower interest expense.
“Following these results, the Board of Directors considered and approved payment of an interim dividend of Shs34.78 per share to be paid in the next 90 days,” KCB said in a statement, adding that every shareholder will get Shs34.78 for each share they hold with the bank.
The KCB said the Retail and Corporate loan book growth momentum that started late last year carried into the first half of 2017, adding that coupled with effective management of interest expense, had cushioned the expected impact of interest rate capping in Kenya.
KCB Group CEO and MD Joshua Oigara said the business however remained resilient, showing strong momentum for growth into the second half of the year, adding that the management has put up strategies to boost earnings largely through digital channels.
“The business fundamentals remain strong and we are optimistic of a stronger performance in the remaining part of the year. We are continually pursuing a sustainable business model and excellence in customer experience to enable us play a more catalytic role in East Africa’s economic journey,” said Oigara.
“The banking sector continues to undergo numerous challenges and as a Bank, our continuous innovation and customer centric orientation ensures that we remain focused on acting as an enabler for progress to our customers. That is what drives us to excellence,” he added.
KCB has over the past three years pursued a strategy which departs from the traditional bricks and mortar banking channels to non-branch channels, particularly digital platforms, including internet, agency, mobile banking, and cards.
“This strategy focuses on growing digital banking so as to enhance the experience of our esteemed customers whenever they interact with us and at the same time spread our network in KCB,” said Oigara.