Banks listed on the Nairobi Securities Exchange(NSE) will pay huge dividends to their shareholders as the lenders recover from effects of the pandemic, amounting to KSh 51.7 Billion, an increase from KSh 18.9 Billion paid in 2020 and KSh 31.7 Billion in 2019 pre-pandemic period.
HF Group, the only loss-making bank, is the only one not paying a dividend for the year ended December 2021.
Equity Group is paying a final dividend of KSh 3.00 per share compared to Standard Chartered Bank Kenya (KSh 14), Absa Bank Kenya (KSh 1.10), KCB Group (KSh 2.00), Co-op Bank (KSh 1.00), Diamond Trust Bank (KSh 3.00), NCBA Group (KSh 2.25), I&M (KSh 1.50), Bank of Kigali (KSh 3.24) and Stanbic Bank Holdings (KSh 9.00).
The fattest dividend cheque comes from Equity Group at KSh 11.32 Billion, followed by KCB (KSh 9.4 Billion) and StanChart Bank Kenya (KSh 7.1 Billion.
StanChart tops the list of lenders in terms of share of net earnings distributed to shareholders, at 79 per cent, followed by Absa at 55 per cent, Stanbic Kenya at 49 per cent, and NCBA at 48 per cent.
While the Banking sector posted an overall improved performance and a return to dividend payment, activity on the majority of counters remains muted despite dividend announcements.
Banks were able to reward shareholders in 2021 on the back of reduced loan loss provisioning and increased operational efficiency. This is as lenders recovered from effects of the pandemic.
I&M lender and Standard Chartered Bank Kenya (25th May 2022) will pay dividends on 25th May 2022, NCBA Group (5th May 2022), Equity Group (30th June 2022), Co-op Bank (17th June 2022), BK Group (1st July 2022), Diamond Trust Bank (28th July 2022).
Dividend payment dates for KCB Group and Stanbic Holdings are yet to be announced.