Kenya Commercial Bank (KCB) Group yesterday announced a 63 per cent growth in pre-tax profits moving up from Sh1.9 billion in 2005 to Sh3.2 billion in 2006.
A dividend payment of Sh6 per ordinary share which is a 50 per cent increase over the Sh4 dividend paid out in 2005.
Gross non-performing loans reduced from Sh13.25 billion in 2005 to Sh12.09 billion in 2006.
Capital standing at Sh11.6 billion up from Sh10 billion in 2005, making KCB the second strongest bank in East Africa.
Share price increased from Sh113 at the end of 2005 to over Sh220 in 2007.
Recommended a 10:1 share split
Branch expansion at least 5 to 10 branches annually for the next 5 years
Looking into expanding further in the region apart from Sudan, UG and TZ
C E O Terry Davidson has done a marvellous job and hopefully will continue after his exist later this year.
3 comments:
The adjusted growth in PBT is actually 38% because other income includes around 600m from disposal of its Mumias shares. I am not sure why KCB is giving a ksh6 dividend when its in a growth phase and needs to re-invest in Kenya and elsewhere.
As for the share spilt-why do a share spilt? Its more expensive to manage 500,000 investors compared to 50,000. Making your share cheaper probably makes more volatile. If you want to increase liquidity si you just the govt which still has around 30% (including NSSF) to divest some of this shareholding.
TD-I know its not a voluntary move on his part. Hopefully we won't have another Kiuk heading a govt body.
mainat, I presume the share split has no merit on its own except for the simple fact that KCB is just like BBK riding the Equity tide. If Equity does it, then others follow!
Ruheni, I suspect most of these spilts are driven by those friendly brokers who are smiling all the way with extra commissions anticipated.
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