The Sh240.1 billion profit earned by Kenyan banks in 2024 indicates a new record high, which is even more impressive given Kenya’s turbulent year in 2024.
The banks also reported a decline in lending during the same period, owing to high interest rates.
Despite the drop in lending, Kenyan banks managed to set a new record high in their collective revenue.
It is however, important to note that the benchmark lending rate was reduced from 13% in June of last year to 10.75% last month, by the country’s central bank with hopes that banks will pass on the benefits to their consumers.
Top earning banks in Kenya
As reported by The Star Kenya, the top earner amongst the banks is KCB Group, which posted the greatest net profit of Sh61.8 billion, a 64.9% increase in 2024.
This prompted the bank to propose a total dividend of Sh3 per share, equating to Sh9.6 billion in distributions.
KCB Group Chairman Joseph Kinyua reiterated that, despite the tripling of earnings, the bank is always ring-fencing its operations by preserving capital and managing expenses to ensure long-term viability.
“We are excited about the strong profits witnessed across all entities. We are optimistic that there will be a pickup in economic activity this year across markets, supported by resilience of key service sectors and agriculture, expected recovery in growth of credit to the private sector, and improved exports,” said Kinyua.
Equity Bank came in at a close second, generating a revenue of Sh48.8 billion.
With plans to up its dividend from Sh15.1 billion in 2024, to Sh16 billion, Equity Bank revealed that as of May 23, the dividend will be paid to registered shareholders.
The Co-operative Bank of Kenya maintained its dividend at Sh1.50 per share, which translates to a distribution of Sh8.8 billion, and reported a net profit of Sh25.5 billion, a 9.8% rise.
The NCBA Group posted a modest rise in earnings to Sh21.86 billion, or 1.9 percent. Nonetheless, it increased its payout by 15.8% to Sh5.50 per share, for a total of Sh9.06 billion, marking the fourth year in a row that it has increased its dividend.
The millionaire Kenyatta and Ndegwa families are among the most notable beneficiaries since they are among the main recipients of the NCBA’s significant funding.
“The board has resolved to recommend to the Shareholders… the payment of a final dividend for the year of Sh3.25 per share, which, together with the interim dividend of Sh2.25 per share, brings the total dividend for the year 2024 to Sh5.50 per share,” the listed lender stated during the release of its financials.
Absa Bank Kenya upped its dividend distribution to Sh1.75 per share, or Sh9.5 billion while posting a 27.5 percent increase in earnings to Sh20.87 billion.
At Sh45 per share, Standard Chartered Bank Kenya issued the most generous dividend concerning share value.
