Over 10 years we help companies reach their financial and branding goals. Maxbizz is a values-driven consulting agency dedicated.

Gallery

Contact

+1-800-456-478-23

411 University St, Seattle

maxbizz@mail.com

Kenya: Listed banks pay record Sh51.7 billion dividend – african markets

Local listed banks nearly trebled their dividend payout for the 2021 financial year, rewarding shareholders who have seen a mixed performance in capital gains on their stock in the period.
 
The nine lenders, including Equity, KCB, and Co-op Bank, have proposed to pay their shareholders Sh51.7 billion for the period, up from Sh18.8 billion in 2020. The payout marks a new record, surpassing the previous peak of Sh31.7 billion seen in 2019.
 
Only loss-making HF Group  is not paying a dividend for the year ended December 2021.
 
The enhanced payout has come after a 73 percent growth in cumulative gross profit to Sh194.8 billion for the banking sector in 2021, as it recovered from the Covid-19 led economic slowdown of 2020.
 
The lenders had either reduced or withheld dividend payments altogether in 2020 as their sought to build capital buffers during the pandemic, and also required approval from the Central Bank of Kenya before making any distribution to shareholders.
 

 
In terms of the absolute amount of dividends paid, Equity Group leads the listed lender segment at Sh11.32 billion, having posted the sector’s largest-ever net earnings of Sh39.1 billion in 2021.
 
It is followed by KCB with a payout of Sh9.4 billion, from a net profit of Sh34.2 billion, and Standard Chartered Kenya  at Sh7.1 billion, having made a net profit of 9.04 billion in the period.
 
In terms of the share of net earnings distributed to shareholders, StanChart leads the listed lenders at 79 percent, followed by Absa  at 55 percent, Stanbic Kenya  at 49 percent, and NCBA  at 48 percent.
 
The dividends have helped cover for some lacklustre performances in share price gains in half of the listed lenders in the past 12 months.
 
Going by Tuesday’s closing prices, only four out of the nine listed lenders have seen a double-digit price gain in percentage terms at the NSE  in the period, with three recording a price decline.
 
The top gainer in the period has been Absa (30.8 percent), while HF Group’s share has declined by 8.2 percent during the period.
 
This has however resulted in some lenders offering dividend yields (at the current price) that are rivalling or beating those offered by the risk-free, one-year Treasury bills (9.75 percent).
 
Stanchart had the best banking dividend yield of 13 percent at Tuesday’s prices followed by NCBA at 11 percent, with Stanbic and Absa at nine percent each.
 
MARKET STATUS: OPEN
KENYAN SHILLING (KES)


By using our website, you agree to our use of cookies. Learn more
Cookies are short reports that are sent and stored on the hard drive of the user’s computer through your browser when it connects to a web. Cookies can be used to collect and store user data while connected to provide you the requested services and sometimes tend not to keep. Cookies can be themselves or others.
There are several types of cookies:
So when you access our website, in compliance with Article 22 of Law 34/2002 of the Information Society Services, in the analytical cookies treatment, we have requested your consent to their use. All of this is to improve our services. We use Google Analytics to collect anonymous statistical information such as the number of visitors to our site. Cookies added by Google Analytics are governed by the privacy policies of Google Analytics. If you want you can disable cookies from Google Analytics.
However, please note that you can enable or disable cookies by following the instructions of your browser.
Copyright © 2021 AM Investor Services SPRL. All Rights Reserved.
Subscribe to our Newsletter
 
Get the latest insights, stories and trends straight to your inbox.
 

source

Author

admin

Leave a comment

Your email address will not be published.