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Kenyan multimillionaire bankers Andrew and James Ndegwa are set to pocket an interim dividend of Ksh103.9 million ($944,500) from the leading financial services conglomerate, NCBA Group.
James Ndegwa, the group chairman, holds an equity stake of 4.1 percent, which amounts to 67,615,945 shares, while Andrew Ndegwa, his brother who sits on the group’s board, has a 4.3-percent stake.
This puts the joint stake of the brothers at 138,525,913 ordinary shares, giving them the right to pocket an interim dividend of Ksh103.9 million ($944,500) on or after Oct. 12.
The interim dividend will be paid from NCBA’s Ksh5.1 billion ($46.0 million) in profits reported in the first half of 2021.
In its recent filing, the group reported a 77-percent growth in its mid-year profit on the back of strong underlying performance across key segments of its primary business.
The management of the leading financial services group disclosed that the strong performance at the end of the first six months of its current financial year demonstrates its ability to tightly balance strong credit discipline with a commitment to support customers during this period.
The financial performance informed the board’s interim dividend of Ksh1.2 billion ($11.2 million), which translates to a payout of Ksh0.75 ($0.006824) per share on all of its 1,647,519,532 ordinary shares held by shareholders.
The dividend recommendation, which aligns with the bank’s commitment to create sustainable wealth for shareholders, will set Andrew Ndegwa on course to earn an interim dividend of Ksh53.2 million ($483,500) on Oct. 12, while James Ndegwa will earn Ksh50.7 million ($461,000).
As of press time, 4:45 PM (UTC), Sept. 2, NCBA shares on the Nairobi bourse were trading at Ksh27.95 ($0.2541), giving the group a Ksh46-billion ($418.6 million) valuation.
At the current price, Andrew’s stake is valued at Ksh2.0 billion ($18.0 billion), while James’ equity stake is valued at Ksh1.9 billion ($17.2 billion).
The market value of their joint stake according to research conducted by Billionaires.Africa is pegged at Ksh3.9 billion ($35.2 million).
