Home Business Ecobank Ghana defer dividends payment for 2018 to improve capital

Ecobank Ghana defer dividends payment for 2018 to improve capital

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Ecobank Ghana claims, assembly the Minimal Money specifications is not the conclusion of cash growth for the lender as it continues to be the foremost money expert services service provider in the country.

To this finish, despite an raise in earnings for the year 2018, the bank has decided to keep on to dividends payment for shareholders.

At the Bank’s Annual Basic Assembly in Accra, some shareholders expressed disappointment that they have been denied dividend for the previous two several years as perfectly as the bank getting rid of share value on the Ghana Inventory Exchange.

Having said that, Running Director of the lender, Dan Sackey in a reaction disclosed that the bank is continue to in the course of action of making its reserve ahead of declaring dividends.

He explained, “Assembly the GH¢400 million funds necessities is not the conclude of the sport but it is key that you manage the proper capital degrees to guidance the Organization. If you appear at Ecobank place on the market and balance sheet and profits technology ability, it is important that we sustain sufficient cash.”

“We did that final yr by transferring money surplus to, first of all, satisfy the needs and also to assure that we have enough buffers to assistance what we do. This yr we will continue to develop on those buffers to enhance the operations and without the need of adequate cash, we will not be capable to make it,” Mr Sackey added.

Development

Ecobank Ghana closed the year with gain just before tax of GH¢133 million amounting to an increase of 36 for each cent as when compared with the previous 12 months. The advancement is mainly attributed to enhanced revenue, lower impairment charges and a average maximize in the price of operations.

Remittance earnings was GH¢57 million symbolizing an 18 Percent yr on year growth. Even with this advancement, the bank resolved to defer dividend payment to the near foreseeable future.

Mr Sackey disclosed that the bank is nonetheless in the approach of creating its reserve prior to declaring dividends.

For the calendar year 2018, 78 per cent of the bank’s transactions had been completed on its digital platform.

Ecobank grew its deposit by 20 per cent as at the end of the year.
 





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