NAIROBI, Kenya, Mar 21 – KCB Group shareholders will forfeit dividends following the lender’s net profit decline by eight percent to Sh37.5 billion for the full year ending December 2023 compared to a similar period in the preceding year.
This is the first time the lender’s stockholders will be going home empty handed in over two decades.
“Pausing dividends in 2023 to preserve capital and build minimum buffers of 200 bps in FY2024,” read a report by KCB in part.
The financial institution yesterday attributed the slide in its profit after tax to increased costs and shilling depreciation.
It represented a fall of Sh3.3 billion from Sh40.8 billion registered in 2022.
The Group’s CEO, Paul Russo, however, remained optimistic about a profitable future, buoyed by strong growth in profits from the lender’s regional subsidiaries.
“We had a fairly good run in the 12 months in the wake of difficult economic times, with most of the business lines achieving strong organic growth,” Russo said.
“We have extended a helping hand to our customers through our loan book to support them to navigate and accomplish their ambitions.”
“Focus remained on robust cost management to give us room to invest in initiatives to drive growth and put the Group on a strong pedestal for better growth in 2024, supported by strong capital and liquidity buffers.“
