KCB Group declared a Sh10.7 billion dividend after net profit rose 21.8% to Sh24 billion for the year ending December 2018, according to a March 2019 report. The lender attributed the growth to reduced operating costs and lower loan loss provisions compared to 2017's Sh19.7 billion profit.
The bank increased its full-year dividend to Sh3.50 per share, a 16.7% rise from the Sh9.1 billion distributed in 2017. Interest income climbed 4% to Sh66.3 billion, while non-interest income remained flat at Sh23 billion.
Loan loss provisions fell 50% to Sh2.9 billion, contributing to the improved results. CEO Joshua Oigara highlighted stronger operating income and cost reductions as key factors, noting the bank's focus on customer needs and risk management.
KCB's gross non-performing loans declined 13.51% to Sh32 billion, with the lender recovering Sh9 billion in bad debts. The results align with broader trends showing Kenyan banks' pre-tax profits reached a record Sh152.3 billion in 2018, according to the Central Bank of Kenya.
