A KCB branch in Nairobi /FILE
KENYA’S listed banks have posted
a combined net profit of Sh240.1
billion for the year ended December 2024, setting a new record
despite a tough economic environment, occasioned by increased
bad loans.
The record performance, however, comes at a time that commercial banks reported a drop in
lending last year.
The high interest rates saw Kenyans shy away from costly loans
amid an economic downturn that
limited their ability to borrow.
This comes despite the Central
Bank of Kenya (CBK) reducing
the base lending rate from 13 per cent in June last year to 10.75
per cent last month in anticipation
that banks will pass on the benefits
to their customers.
The banks’ earnings were however not impacted by the happenings in the fiscal space.
Among the top performers is
KCB Group, which reported the
highest net profit at Sh61.8 billion—representing a 64.9 percent
jump from the previous year.
This saw the lender propose a
total dividend of Sh3 per share,
amounting to Sh9.6 billion in
payouts.
KCB Group Chairman Joseph
Kinyua, maintained that despite
the doubling of the profits the
bank is continually ring-fencing
its business by preserving capital and containing costs for long-term
sustainability.
“We are excited about the strong
profits witnessed across all entities.
We are optimistic that there will
be a pickup in economic activity this year across markets, supported by resilience of key service
sectors and agriculture, expected
recovery in growth of credit to the
private sector, and improved exports,” said Kinyua.
Equity Group
followed closely with a profit of
Sh48.8 billion with the bank plans
to distribute Sh16 billion in dividends, up from Sh15.1 billion in
the prior year.
According to the
lender, the dividend will be payable
to shareholders on the register as
of May 23
Co-operative Bank of Kenya recorded a net profit of Sh25.5 billion, a 9.8 percent increase, and
maintained its dividend at Sh1.50
per share, translating to a payout
of Sh8.8 billion.
NCBA Group posted a modest
1.9 percent rise in profit to Sh21.86
billion. However, it still raised its
dividend by 15.8 percent to Sh5.50 per share, totaling Sh9.06 billion—
the fourth consecutive year of dividend growth.
Among the big winners are the
billionaire Kenyatta and Ndegwa
families, who are among the major
beneficiaries of NCBA’s generous
cash distribution.
“The board has resolved to recommend to the Shareholders… the
payment of a final dividend for the
year of Sh3.25 per share, which,
together with the interim dividend
of Sh2.25 per share, brings the total dividend for the year 2024 to
Sh5.50 per share,” the listed lender stated during the release of its
financials.
Absa Bank Kenya saw its profits
soar by 27.5 percent to Sh20.87
billion and raised its dividend payout to Sh1.75 per share, amounting to Sh9.5 billion.
Standard Chartered Bank Kenya delivered the most generous
dividend relative to share value,
declaring a total of Sh45 per share.
This follows a 45 percent jump in
profit to Sh20.1 billion, translating
to a record Sh13.9 billion dividend
payout I&M Group grew its net profit
by 21.9 percent to Sh15.3 billion,
boosting its total dividend payout
to Sh5 billion or Sh3 per share—a
17.6 percent increase.
Stanbic Holdings posted a record net profit of Sh13.71 billion, up 12.8 percent. The bank
increased its dividend payout by
35.1 percent to Sh8.1 billion, continuing a three-year streak of rising
dividends.