This archive report was first published on 22 April 2020.
On April 22, 2020, NCBA Group Plc announced a significant change in its dividend policy, opting for a bonus share issue instead of cash dividends for its shareholders.
The decision was made by the company's board, taking into account the unprecedented effects of the COVID-19 pandemic on the economy.
As a result, shareholders who were previously set to receive cash dividends will now receive a bonus share issue at the rate of 1 for every 10 shares held.
The bonus shares will be issued to shareholders registered on the lender's rolls by close of business on May 12, 2020, subject to approval by the Capital Markets Authority (CMA) and shareholders.
NCBA has also recommended a final dividend of KSh 1.50 per share, which will be paid to shareholders on its register by close of business on April 23, 2020.
The lender has contributed KSh 100 Million to the COVID-19 Emergency Response Fund, which will be used for humanitarian assistance to vulnerable members of the community.
NCBA's financial performance in the year ended December 31, 2019, was impressive, with the company recording KSh 7.8 billion in net earnings compared to KSh 5 billion in 2018.
