BSP to pay interim dividend of 25t per share

Business

THE Bank South Pacific (BSP) group will pay an interim dividend of 25 toea per share on Oct 16 following its recording of a net profit of K381.9 million in the first half year.
Group chief executive officer Robin Fleming said the bank paid 38 toea in the same period last year.
But the board decided to reduce that to 25 toea due to the ongoing uncertainty related to Covid-19 impacts on operating performance for the second half.
“Again, a couple of components that does reflect to prove the approach to the capital management of BSP.
“This is the interim dividend, when we pay the full dividend in relation to profit which will then be approved and signed by all of us, which will relate to 2019 prior to Covid-19 events.”
He said there were still some uncertainties as to what the real impact of the Covid-19 would be on for the rest of the year.
“We remain hopeful and confident that once we get through this phase of Covid-19, the economic activity will be somewhat more stable during the next six months,” he said.
“But equally there are some uncertainties, and giving regard to those uncertainties, the board makes a prudent decision to recognise or provide our shareholders with an interim dividend which provides some cash flow, or some opportunities of cash flow and additional profits which have been reduced.”
The interim dividend of 25 toea per share represents:

  • A gross interim dividend amount of circa K116.8 million (2019: K177.6m);
  • An interim payout ratio of 30.6 per cent (interim 2019: 40.8 per cent); and,
  • An annualised yield on a current K12 share price of 10.08 per cent, below recent prior year averages of 12 per cent due to the impact of Covid-19.

One thought on “BSP to pay interim dividend of 25t per share

  • The COVID 19 pandemic did not affect BSP much because our moneys are with the bank making money for BSP itself.. No surprise, that a profit was made during this crisis time.

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