NCBA Group has raised its dividend by 15.8 percent to Sh5.50 per share for a total of Sh9.06 billion, the fourth straight year of increased payout, amid a 1.9 percent rise in net profit to Sh21.86 billion for the year ended December 2024.
Financial results published on Wednesday showed the lender raised the final dividend per share to Sh3.25, which is in addition to the interim payout of Sh2.25 made last year in September.
The per share dividend of Sh5.50 is an increase from Sh4.75 per share amounting to Sh7.82 billion paid in the preceding period when net profit stood at Sh21.45 billion.
The latest payout, which represents 41.4 percent of net profit, marks the fourth consecutive year that the bank has increased its payout to shareholders.
The distribution per share in 2022 was Sh4.25, up from Sh3 in the prior year.
The final dividend will be paid on or about May 28 to shareholders who will be on the company’s register by the end of April 30.
During the review period, net interest income fell to Sh34.51 billion from Sh34.6 billion, while non-interest income dipped to Sh28.18 billion from Sh29.08 billion.
However, operating expenses fell to Sh37.64 billion from Sh38.24 billion, resulting in a 1.9 percent growth in net profit. The decline in operating expenses was helped by a 40 percent cut in provision for credit losses to Sh5.48 billion.
“We are pleased to announce our full year 2024 financial results which reflect the resilience of our diversified business model…Amidst ongoing external headwinds, NCBA’s strategic imperatives have enabled us to deliver shareholder value,” NCBA Group managing director John Gachora said.
Subsidiary profits
The lender said its regional subsidiaries in Uganda, Tanzania and Rwanda delivered a combined profitability of Sh3.2 billion, up seven percent on the previous year.
The combined non-banking subsidiaries, including the investment bank, bancassurance, leasing and insurance arms, recorded a 36 percent growth in profit to Sh1.2 billion.
“We continue to tighten credit risk management, enhance recovery efforts, and refine our lending strategies to maintain a healthy loan book. We remain focused on driving efficiency, deepening customer relationships, and leveraging digital channels for sustainable growth,” Mr Gachora said.
NCBA last week rebranded its insurance subsidiary, AIG Kenya, as NCBA Insurance Company. The lender acquired the insurer in July last year.
