Equity Group Holdings has withdrawn proposed dividend declaration and payment in what they say is market uncertainty.
In a statement, the lender says that the withdrawal is as a result of assessment of risk, post balance sheet date of December 31, 2019 and of the Group’s approach to prudent risk mitigation and management amidst the Covid-19 pandemic.
“COVID-19 global health pandemic has led to a great lockdown which has induced a complex and multi-faceted global crisis of health, economic, and social challenges of an unprecedented magnitude. The pandemic’s effects have created a significant drop in the global GDP, and a substantial loss of employment leading to an economic recession which economists are projecting will evolve into a global depression worse than the Great Depression of the 1930’s,” the Bank stated.
Read: Equity Bank Sends Home 60 Employees After Donating Billions To COVID-19 Fund
The bank recorded a 14 percent growth in profit after tax growth to Ksh22.6 billion for the year ended December 31, 2019.
With a 14 percent growth in earnings per share of Ksh5.93 up from Ksh5.22, the bank’s Board of Directors had proposed a 25 percent enhanced dividend payout of Ksh2.50 up from Ksh2.00 per share.
The shareholders were poised to receive Ksh9.5 billion, before the board changed its mind
Email your news TIPS to Editor@kahawatungu.com or WhatsApp +254707482874. You can also find us on Telegram through www.t.me/kahawatungu
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
