NMB bank shareholders to receive Sh48 billion in dividends

What you need to know:

The recommended dividend payout of Sh 48 billion or Sh96 per share represents a 45 per cent increase compared to dividend payout of Sh33 billion or Sh 66 per share paid for 2018 and is in line with the bank’s dividend policy of paying out a third of its profit after tax as dividend.

Dar es Salaam. NMB Bank shareholders have approved Sh48 billion in dividend (a 45 per cent increase to 2018 dividend payout) that will see every shareholder earn Sh96 per share.
The resolution was made during the first ever-digital 20th Annual General Meeting (AGM) held at the weekend.
The significant increase in dividend payout reflects the excellent 2019 annual results and a strong capital position of the Bank.
The recommended dividend payout of Sh 48 billion or Sh96 per share represents a 45 per cent increase compared to dividend payout of Sh33 billion or Sh 66 per share paid for 2018 and is in line with the bank’s dividend policy of paying out a third of its profit after tax as dividend. The Bank’s long-term intention is to accelerate dividend growth in the coming years.
The Bank reported a Sh142 billion profit after tax for the year ended December 31, 2019; a 46 per cent increase from Sh98 billion that was recorded in the previous year.
The Board’s Interim Chairperson, Mrs. Margaret Ikongo, revealed that the Board seeks to balance maximizing shareholders’ returns while also reinvesting funds into the Bank’s business in order to finance its growth plans.
“NMB has over the years maintained a healthy capital position and we intend to continue doing so. To achieve this, it is crucial that we make the right decisions especially in anticipation of any regulatory changes in capital requirements,” said the interim Chairperson.
“As a Bank, we are committed to continue playing a leading role in driving Tanzania’s growth agenda through credit extension in the personal/household sector, agriculture, insurance, manufacturing and construction”, added Ms Ruth Zaipuna, the Bank’s acting managing director.
Ms Zaipuna said, the good results for 2019 underscores management turnaround strategy that sought to re-emphasize three strategic pillars; Deposit mobilization, Revenue generation and diversification, and operational efficiency.
NMB is also dedicated towards supporting Micro and SME’s growth especially in the agriculture sector by providing capacity building through advisory services on better ways to invest in agri-business value chain, backed by the NMB Foundation, which provides agricultural awareness and financial inclusion education in the sector.
“We are the leading Bank in Tanzania. Our best in-class governance, IT and support systems make our customers’ deposits and savings safer with us” she added.