Kenyan Lender NCBA Increases Interim Dividend After Jump in Profits

AFRICAN STOCKS AND FINANCEAugust 26, 2024 at 12:46 PM UTC

TLDR

NCBA Group boosts interim dividend by 28.6% to Sh2.25 per share, reaching a total of Sh3.71 billion on increased first-half net profit.
Net profit for NCBA Group grows by 5% to Sh9.82 billion, up from Sh9.35 billion in the prior period.
Dividend payment of Sh2.25 per share to occur around September 25, 2024, for shareholders registered by September 11, 2024.

NCBA Group has increased its interim dividend by 28.6% to Sh2.25 per share, totaling Sh3.71 billion ($29 million), following a rise in net profit for the first half of 2024. This marks an increase from the Sh1.75 per share paid last year.

The lender's net profit grew by 5% to Sh9.82 billion, up from Sh9.35 billion in the same period last year. The dividend is set to be paid on or around September 25, 2024, to shareholders registered by September 11, 2024.

Meanwhile, net interest income fell to Sh16.45 billion from Sh17.2 billion due to higher interest expenses on deposits, but non-interest income rose 7.9% to Sh14.91 billion.

Key Takeaways

NCBA Group's impressive financial performance in the first half of 2024 underscores the bank's strong profitability and commitment to delivering value to its shareholders. The enhanced dividend payout not only reflects the company’s robust financial health but also signals confidence in its future earnings potential. For shareholders, this dividend boost translates to a direct financial benefit and reinforces the attractiveness of NCBA as a solid investment, further strengthening shareholder loyalty and trust in the bank's long-term strategy.

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