Stanbic may rise dividend
Apr 30, 2009
THE sh30b dividend approved by Stanbic Bank’s shareholders will be reviewed on June 30, bank officials have said.
By David Mugabe
THE sh30b dividend approved by Stanbic Bank’s shareholders will be reviewed on June 30, bank officials have said.
They added the review would be done if the bank’s evaluation indicates that it can come out of the economic mess smoothly.
Shareholders on April 28 approved a sh5.86 dividend pay-out per ordinary share after a recommendation from the bank’s directors.
A total of sh30b will be paid out to the 27,351 shareholders, a drop from the sh34b paid out in 2007.
“It is just out of caution that we should not pay out a higher dividend now,†Hannington Karuhanga, the Stanbic Bank board chairman, said at the annual general meeting (AGM) at the Golf Course Hotel in Kampala.
The decision to pay a lower dividend, the bank explained, was to cushion it against the uncertainties of the global economic downturn that is slowly sipping into the Ugandan economy.
Philip Odera, the Stanbic Bank managing director, said they would pay out the sh6.64 per ordinary share paid in 2007, should conditions indicate that the bank was handling the economic crisis well.
The announcement of the AGM caused a slight rise in the bank’s share price at the Uganda Securities Exchange, from sh120 to sh140 on Monday.
For the year ended December 31, 2008, the bank posted a sh78.6b profit after tax, which represents a 48% increase over the sh53b recorded in 2007.
“This was driven by strong revenue growth, particularly on interest from loans and advances and trading revenues, which increased by 27% and 82% respectively,†read the annual financial report for 2008.
The AGM also retained Maria Kiwanuka, Samuel Sejjaaka, Kitili Mbathi and Hannington Karuhanga as directors for another term, while KPMG, one of the leading audit firms, were retained as external auditors.
Shareholders were, however, concerned that the bank staff were confusing product knowledge with customer care, resulting into poor customer service.
THE sh30b dividend approved by Stanbic Bank’s shareholders will be reviewed on June 30, bank officials have said.
They added the review would be done if the bank’s evaluation indicates that it can come out of the economic mess smoothly.
Shareholders on April 28 approved a sh5.86 dividend pay-out per ordinary share after a recommendation from the bank’s directors.
A total of sh30b will be paid out to the 27,351 shareholders, a drop from the sh34b paid out in 2007.
“It is just out of caution that we should not pay out a higher dividend now,†Hannington Karuhanga, the Stanbic Bank board chairman, said at the annual general meeting (AGM) at the Golf Course Hotel in Kampala.
The decision to pay a lower dividend, the bank explained, was to cushion it against the uncertainties of the global economic downturn that is slowly sipping into the Ugandan economy.
Philip Odera, the Stanbic Bank managing director, said they would pay out the sh6.64 per ordinary share paid in 2007, should conditions indicate that the bank was handling the economic crisis well.
The announcement of the AGM caused a slight rise in the bank’s share price at the Uganda Securities Exchange, from sh120 to sh140 on Monday.
For the year ended December 31, 2008, the bank posted a sh78.6b profit after tax, which represents a 48% increase over the sh53b recorded in 2007.
“This was driven by strong revenue growth, particularly on interest from loans and advances and trading revenues, which increased by 27% and 82% respectively,†read the annual financial report for 2008.
The AGM also retained Maria Kiwanuka, Samuel Sejjaaka, Kitili Mbathi and Hannington Karuhanga as directors for another term, while KPMG, one of the leading audit firms, were retained as external auditors.
Shareholders were, however, concerned that the bank staff were confusing product knowledge with customer care, resulting into poor customer service.