KCB Group shares on Friday recovered at the Nairobi Securities Exchange after recording a sharp decline on Thursday.
The shares had recorded a decline following the release of the full year 2023 financial results in which the lender announced that it will not be giving out dividend.
On Thursday, the shares closed 9.04 per cent down at a price of Sh. 24.15 per piece. This came as the counter moved a volume of 14.98 million shares. The counter closed the day at a market valuation of Sh. 77.60 billion.
On Friday, KCB Group shares were among the top gainers. The shares recovered to peak at a price of Sh. 26.20 per piece after recovering by a margin of 8.49 per cent.
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The counter moved 5,159,800 shares during the day’s trading and settled at an average of 25.55 per share. This was equivalent to a gain of 5.80 per cent.
On Wednesday, KCB Group announced a full year net profit of Sh. 37.5 billion for the full year ended December 31. This net profit was derived from a profit before tax of Sh. 48.4 billion.
The net profit was a drop of 8.3Â from the Sh. 40.8 billion net profit that was realized by the bank in the full year ended December 31, 2022. The drop came as the bank’s operating costs increased by 61 per cent.
Following this profit drop, the bank has announced that its shareholders will not be getting any dividend payout as the bank seeks to conserve capital.
During the release of the financial results, the bank confirmed that it will be selling its local subsidiary, National Bank of Kenya, to Nigerian lender, Access Bank for an undisclosed amount.
“In 2019, KCB took a bold step to acquire 100 per cent of the National Bank of Kenya and over four years made progressive investments, but some legacy claims have eroded all the gains we achieved,” said KCB Group Chairman Joseph Kinyua.