Shareholders of NCBA Group Plc will now receive a bonus share issue instead of cash dividends payouts that was to be given to those on the company’s register at the close of business on 23rd April 2020.
This follows a decision by NCBA directors to vary its earlier proposal and instead go for a bonus share issue at the rate of 1 for every 10 shares held.
The board is varying the type of return to the group’s shareholders, based on the unprecedented effects of the COVID19 pandemic, noting that the bonus share issue will place shareholders in a better position.
While releasing its financials, the board of NCBA has recommended a final dividend of KSh 1.50 per share. This payout was to made to shareholders on its register by close of business on 23rd April 2020.
The proposed bonus shares will be issued to shareholders registered of the lender’s rolls by close of business on 12th May, 2020. This decision is subject to approval by the Capital Markets Authority (CMA) and shareholders.
The lender is on the list of firms that have already pledged their contributions to the COVID19 Emergency Response Fund. The Bank has contributed KSh 100 Million to this kitty, to be used for humanitarian assistance to vulnerable members of the community.
In the financial year ended 31st December, 2019, NCBA recorded KSh 7.8 billion in net earnings compared to KSh 5 billion in 2018.
NCBA is the product of a merger between Commercial Bank of Africa Limited and NIC Group PLC, a transaction that was completed in October last year.
The planned integration of other NCBA Group PLC subsidiaries in Kenya is already complete while integration in the other jurisdictions where NCBA Group has a presence is still ongoing.
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