New Zimbabwe.com

CBZ declares $ 5.5 million interim dividend

By Alois Vinga


COMMERCIAL Bank of Zimbabwe (CBZ) has declared an interim dividend of $5.5 million which will be paid for the period covering the first half of the year signifying the institution’s strong balance sheet.

In a statement, CBZ group corporate secretary, Rumbidzai Jakanani said dividend will be paid in respect to ordinary shares.

Said Jakanani, “The board declared an interim dividend of $ 5 516 745 equivalent to $1.06 per share for six months ended June 30 2019 payable in respect of all ordinary shares of the company.

“This dividend will be payable in full to all shareholders of the company registered at the close of on November 8 2019.”

The payment of the dividends will take place on or about November 11, the applicable shareholders tax will be deducted from the gross dividends.

The shares of the company will be traded cum dividend on the Zimbabwe Stock Exchange up to the market day of November 5 2019 and ex dividend as from November 6 2019.

The move comes at a time when most Zimbabwe Stock Exchange listed companies have been struggling to pay shareholders dividends.

Meanwhile, the bank recorded a profit of $137.4 million in the first half of 2019 which has enabled the institution to offer a lucrative dividend.

The diversified financial services group’s shares increased by 40%, reaching 204.75 during the period under review surpassing the entire market by increasing 255 % in the period under review.

During the year’s first half, the bank’s total deposits went up 25% to $2, 69 billion from a comparative 2018 of $2, 15 billion.

Total assets increased to $3,7 billion from $2,5 billion recorded in the same period last year whereas total liabilities stood at $2,8 billion, a 33% increase from $2,1 billion reported in the previous year.

 

As of December 2017, the bank was the largest financial services provider in Zimbabwe, ahead of FBC Bank, Barclays Bank Zimbabwe, Stanbic Bank Zimbabwe and Standard Chartered Zimbabwe.

At that time, CBZ Bank’s total assets were valued in excess of US$1.992 billion with shareholders’ equity of US$188.11 million.