This archive report was first published on 18 November 2021.
Kenya's KCB Group Sees Strong Growth and Dividend Momentum ¶
Published on November 19, 2021
Kenya's KCB Group has reported a significant increase in net profit, with a 131 percent jump to Sh25.1 billion in the nine months to September. The bank has also declared an interim dividend of Sh1 per share.
According to KCB Group CEO Joshua Oigara, the bank's strong performance is expected to continue, with a focus on maintaining dividend momentum before the COVID-19 pandemic. Oigara noted that the bank's recovery is strong, and it will be able to maintain its dividend payments.
When asked about the possibility of KCB's dividend payments returning to the pre-pandemic era, Oigara replied, 'We see a very strong outlook for our businesses in terms of performance so the recovery is strong. We will be able to maintain our dividend momentum before the Covid-19 pandemic.'
Regarding the bank's regional expansion, Oigara stated that KCB is still keen to acquire 100 percent of BPR in Rwanda and is waiting for final feedback on the acquisition of Bancabc Tanzania. He also mentioned that the bank is focusing on consolidation and does not see scope for further regional expansion at the moment.
On the topic of NBK, Oigara stated that the subsidiary will be compliant with various minimum capital requirements before the end of the year. He also mentioned that the bank is still in the environment of conserving cash but is also looking at opportunities to give a dividend to its shareholders.
When asked about the bank's plans for the Democratic Republic of Congo, Oigara stated that KCB is looking at opportunities in the region and plans to enter the market through a merger and acquisition.
Regarding his own future at KCB, Oigara stated that it is up to the board to decide whether to renew his contract, which expires in December 2022.
Finally, Oigara mentioned that the bank is still working with the Central Bank of Kenya to find a solution on how to continue advancing credit in the wake of the ban on reporting defaults on loans of less than Sh5 million to credit reference bureaus.
