African Bank Holdings Limited on Friday announced that it reached a significant milestone, paying out its inaugural gross dividend of 20 cents per ordinary share to its shareholders.
In a statement, the group said with an issued share capital of 500 million ordinary shares at the declaration date, the total dividend payout is R100 million.
These shareholders include the South African Reserve Bank (SARB), Government Employees Pension Fund (GEPF), and Consortium Banks.
African Bank Holdings is 50% owned by the Reserve Bank, with the Government Employees Pension Fund (GEPF) owning 25%. A consortium of five South African banks holds the other 25% on a pro-rata basis: Capitec (1%), Investec (2%), Nedbank (4%), Absa Trading and Investment (5%), Standard Bank (6%) and FirstRand (7%).
African Bank CEO Kennedy Bungane said: “This inaugural dividend illustrates the group’s continued commitment to adding value to its shareholders, in line with the bank’s evident growth trajectory and journey to its public offering in 2025".
According to the bank, the dividend also indicates its progress in line with the bank’s ‘Excelerate25’ strategy, which it embarked on since the end of 2021 to build a scalable, diversified, and sustainable banking business with a compelling listing proposition.
African Bank's strategy was based on five sustainability levers comprising customer satisfaction, social responsibility, environmental protection, inclusivity, and financial resilience.
Last year, African Bank’s said acquisitions of Grindrod Bank, as well as the assets and liabilities of Ubank, became effective on November 1, 2022. Ubank would fall under African Bank’s consumer banking operations.
“With our recent acquisition of Grindrod Bank as well as UBank, the bank is well-positioned to continue providing value to our shareholders and have an impact on consumers and the market," African Bank said.
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