The Kenyatta family is set to bag Ksh652.5 million from their 13.2 percent stake in NCBA, after the lender declared a profit of Ksh10.22 billion in 2021 from Ksh4.57 billion in 2020.
The family of former Central Bank of Kenya Governor Philip Ndegwa, which owns 11.7 percent stake in the bank will earn Ksh580.8 million in dividends for the period.
Growth in the lender’s profitability is largely attributable to lower costs in the 12-month cycle with the bank’s total operating costs falling by 16.5 percent to Ksh33.4 billion from Ksh40 billion in December 2020.
Its operating income slowed by six percent to Ksh49.2 billion from Ksh46.4 billion.
Read: KCB’s Profit After Tax Hits Ksh34.2B In Full Year 2021
Net interest income grew by 5.9 percent to Ksh27 billion from Ksh25.5 billion non-interest funded income (NFI) grew by 5.7 percent to Ksh22.1 billion.
Non-performing loans grew by 10.5percent to Ksh44.3 billion from Ksh40.1 billion.
Despite the growth in interest income, NCBA has continued to see a loan book attrition with the net advances falling to Ksh244 billion from Ksh248.5 billion.
Read: Absa Bank Kenya Record Ksh10.9 Bn Profit, Pays Ksh6 Bn In Dividends
NCBA has previously tied the slump in loans to its greater disbursements of digital loans which are mostly short-term in nature.
In 2021, NCBA disbursed Ksh584 billion worth of digital loans, a sum 34.6 percent greater than Ksh434 billion digital loans disbursements in 2020.
Subsequent to the profit rise, NCBA board has recommended the payment of a Ksh.2.25 final dividend or a cumulative Ksh.3.7 billion payout.
This takes the bank’s total dividend payments to Ksh.3 per share after it paid out a Ksh0.75 interim dividend last year.
NCBA’s earnings per share have improved to Ksh6.21 from Ksh2.77 after the profit growth.
Read: Equity Group Shareholders To Harvest Ksh11 Bn As Lender Mints Ksh40 Bn In Profits
