Shareholders for one of the country’s high street banks, Standard Bank, are smiling their way to the bank after the institution approved a K12.9 billion final divided for the year ended December 2023.
The final dividend represents K54.97 earnings per share.
This came out during the bank’s annual general meeting (AGM) held in Blantyre on Thursday.
It follows a first interim dividend of K5 billion or K21.31 per share paid in March 2024 and a second interim dividend of K7.5 billion or MK31.96 per share paid out in April 2024.
The AGM’s approval of the final dividend means that the total dividend for 2023 will be K25.4 billion or K108.24 per share.
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This translates into a 27 percent increase in the divided when compared to a total dividend of K20 billion or K85.23 per share total divided paid out last year.
In an interview, one of the company’s shareholders Brian Kampanje said shareholders are impressed that the bank managed to perform well, considering the macroeconomic conditions in the country.
He said they are thrilled with the dividend, especially that the final is above market trends.
“In the short term the mining sector is going to be more vibrant and we encourage management to consider investing their effort in the mining sector. We would love it if the number of shares which they have floated on the market could be increased. You know Standard Bank has about 234 million issued shares which is less than one percent of all the shares listed on the stock exchange.
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“We approached management and they promised that they would be looking into that because when the number of issued shares is low, what happens is that the shares are overpriced and they only benefit a few people and the economy as a whole does not benefit,” Kampanje said.
Standard Bank Board Chairman Chritopher Kapanga said they have rolling strategies which helped them navigate economic challenges.
“We had calamities, we had cyclones, we had inflation, double digit inflation, and then we had the devaluation of the currency. But in spite of that, we indeed managed to have a profit that was way beyond our expectations and also beyond what we did the previous year. The simple answer to that is we had a resolute strategy. We remained resolute to make sure that our people are delivering on whatever they have promised that they will deliver according to the strategic plan,” Kapanga said.
