– Equity, which restructured 25% of its loan book (KSh 92 billion), said the announcement of the dividends was made when the economy was doing better
– The lender joined the list of other banks such as NCBA Group and Standard Chartered which also postponed cash distributions due the effects of COVID-19
– It was the first time the second largest bank by assets in the country skipped paying dividends since it was listed on the Nairobi Securities Exchange (NSE) in August 2006
The coronavirus pandemic continues to take its toll on businesses globally and locally amid uncertainty on when it will end as countries try to re-open economies.
In Kenya, Equity Bank Group has cancelled a KSh 9.4 billion dividend payout to its shareholders citing COVID-19 fears as it sought to conserve cash.
Equity Group said the coronavirus pandemic had affected its operations. Photo: Equity Bank.
Source: UGC
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Equity, which restructured 25% of its loan book (KSh 92 billion), said the announcement of the dividends was made when the economy was doing better (before the pandemic) but times changed. “Accordingly, the board has passed a resolution withdrawing the proposed dividend recommendation and instead will be recommending to the shareholders that no dividend is paid for the financial year ended 31st December, 2019,” "Therefore, the shareholders of the company and other investors are advised to exercise caution when dealing in the company’s ordinary shares on the Nairobi Securities Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange," Equity said in a statement. “ The lender had proposed a dividend payout of KSh 2.50 per share and joined the list of other banks such as NCBA Group and Standard Chartered also postponed cash distributions.
It was the first time the second largest bank by assets in the country skipped paying dividends since it was listed on the Nairobi Securities Exchange (NSE) in August 2006.
TUKO.co.ke earlier reported that oil company, Shell, revealed shareholders would receive a fraction of their dividends due to the effect of the coronavirus.
This was the first time the company announced such a move since the second world war as its net income fell by 46% to $2.9 billion (KSh 290 billion) for the first quarter of 2020. Do you have a groundbreaking story you would like us to […]
