Stanbic shareholders in Kenya get record dividends as profit hits $84m

AFRICAN STOCKS AND FINANCEMarch 9, 2024 at 8:40 PM UTC

TLDR

Stanbic Holdings increases dividend payout by 21.8% to Sh6.07 billion after net profit soars by 34.2%.
Net profit reaches highest level in lender's history, expanding to Sh12.16 billion.
Stanbic proposes highest-ever dividend per share increase from Sh12.60 to Sh15.35.

Stanbic Holdings has increased its dividend payout by 21.8% to Sh6.07 billion after the net profit for the year ended December 2023 surged by a third, reaching the highest level in the lender’s history.

Net profit expanded by 34.2% to Sh12.16 billion ($84.2 million) from Sh9.06 billion recorded in the previous year, driven by growth in interest income and non-funded income.

The enhanced performance prompted the Stanbic board to propose an increase in dividend per share from Sh12.60 to Sh15.35, marking the highest-ever payout in the history of the lender.

Key Takeaways

Dividends are important in stock investing because they give shareholders a steady source of extra money. Large corporations that make a lot of money and have stable finances usually pay significant dividends. Investing in these companies can benefit in two ways: your shares can become more valuable over time, and you get regular dividend payouts. The increased Stanbic

dividend per share will result in shareholders receiving a total of Sh6.07 billion, representing 49.9% of the net earnings. This compares with the previous year when the company distributed Sh4.98 billion, equivalent to 55% of its profit.

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