Hefty dividend for NMB Bank Plc shareholders

NMB Bank’s northern zone manager Aikansia Muro receives a drawing from a sclas seven student at Khatib Makwinja during an event that was held at Kwakombo Primary School in Korogwe, Tanga yesterday. During the event, the bank donated 250 desks and 170 iron sheets to six schools in Tanga. The bank’s board is recommending a hefty dividend to its sharehoklders after a record profit in 2020. Right is the Korogwe District Commissioner, Ms Kissa Gwakisa. PHOTO|THE CITIZEN CORRESPONDENT

Dar es Salaam. NMB Bank Plc shareholders will smile all the way to the bank next month as the lender’s board of directors recommend a record total dividend of Sh68.7 billion for the 2020 calendar year.

The amount is 43 percent more than the total dividend of Sh48 billion that was approved from the lender’s 2019 profit.

Last year, NMB Bank Plc registered a record net profit of Sh205 billion, up from Sh142.335 billion in 2019.

If the proposed Sh68.7 billion sails through during the Annual General Meeting (AGM) that is slated to be conducted virtually on June 4, 2021, each NMB shareholder will receive Sh137 as dividend per share. The money is 42.7 percent more than the dividend per share of Sh96 that was paid from the bank’s 2019 profit.

The NMB Bank Plc Company Secretary, Ms Lilian Komwihangiro, said in a statement yesterday that among the issues to be deliberated upon during the virtual AGM is the directors’ proposal of a dividend payment of Sh137 per share, amounting to Sh68.5 billion out of the 2020 profit.

Currently, the bank’s major shareholder is an investment firm Arise which took over the 34.9 percent stake that was held by Holland-based Rabobank after a huge share transfer done late last year.

On December 28, 2020, the Capital Market and Securities Authority (CMSA) in Tanzania approved the transfer of 174,500,000 NMB Bank Plc shares owned by Rabobank to Arise, its investment arm.

The shares transfer process was completed on December 31 last year. The government is the second largest investor in NMB Bank Plc, holding a 31.8 percent slice.

If the Sh68.7 billion dividend is approved by the shareholders, the government is estimated to receive over Sh20 billion in dividend for the year 2020.

This will be a rise from the Sh15.2 billion that the government pocketed in dividends from NMB Bank Plc last year.

Speaking on last year’s performance, the NMB Bank Plc chief executive officer, Ms Ruth Zaipuna, said the record performance portrayed that the execution of the bank’s strategic plans was well on track.

The plans, she said, focus on growing income and improving operational efficiency by leveraging on technology to enrich customer experience and cost efficiency.

“Despite the global uncertainties in the wake of the Covid-19 pandemic, we delivered a record-breaking performance with strong stakeholder support, operational excellence, and solid strategy execution,” she said.