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Equity Bank cancels Sh. 9.4 billion dividend payout over coronavirus

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Equity Bank Dividend: Equity Bank has cancelled its Sh. 9.4 billion dividend payout to shareholders. This decision comes in the wake of fears over cash liquidity due to the impact of the coronavirus pandemic.

The bank had proposed to pay out a dividend of Sh. 2.50 per share. This dividend pay was due for payment on July 24. It had been proposed after the bank recorded a net profit of Sh. 22.6 billion for year ended December 31 2019. The financial results show that Equity recorded a 14 per cent profit after tax growth to Sh. 22.6 billion from Sh. 19.8 billion in 2018. This performance was largely driven by a 23 per cent growth in loan book to Sh. 366.4 billion from Sh. 297.2 billion in the previous year.

How Equity Bank is supporting its customers during corona pandemic

“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,” the bank said in a statement. The declaration also came as a cautionary announcement to its shareholders on the NSE, USE and the RSE Kenya, Uganda and Rwanda stock exchanges where the bank trades.

“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,” the bank said.

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