Equity Bank Group has announced Tuesday withdrawing dividend payment to shareholders due to the huge uncertainties caused by the ongoing Coronavirus pandemic.
The bank had ksh 9.5 billion to be shared as dividends to registered shareholders.
The Equity Group Holdings Board took a conservative approach that recognizes the emerging unquantified risk of the pandemic and opted to preserve capital in the face of the prevailing uncertainty,” said Dr. James Mwangi, the Group CEO and Managing Director. He added that, “A strong capital and liquidity position gives us the strength and capacity to cushion our business and accommodate and walk with our customers during these challenging times”.
By withdrawing the recommendation for a dividend payout the Equity Bank Board is exercising financial prudence so as to conserve cash to enable the Group to respond appropriately to the unfolding crisis in terms of supporting its customers, and to be able to direct cash resources to potential opportunities that may arise as economies in which Equity Group Holdings operates begin to recover.
Customers are now encouraged to be innovative during the pandemic and create growth opportunities now and even post COVID-19.
Advertisements
Write a comment
Post a Comment
Loans Kenya Blog admin will never approve abusive or inciteful comments. In addition, avoid including sensitive or private personal information in your comments for your own online safety.