Equity Bank spooks investors with Sh9.4 billion dividend recall
Friday, May 29, 2020 0:01
By CHARLES MWANIKI
Equity is seeking to conserve cash due to the Covid-19 outbreak.
FILE PHOTO | NMG
Equity Bank’s #ticker:EQTY share has wobbled from Tuesday after the lender informed investors of a surprise withdrawal of dividend, before recovering some of the losses in the last two days as buyers returned to look for a friendly entry price.
The share closed Tuesday 5.4 percent down at Sh34.20 from Sh36.15 on Monday, when the lender disclosed the move to retain the dividend pay-out totalling Sh9.4 billion due to the need to conserve cash in the wake of the global Covid-19 pandemic.
Equity’s move to conserve cash due to the Covid-19 outbreak follows a similar stance by fellow top tier lender NCBA #ticker:NCBA, which last month opted to pay shareholders a bonus share for every 10 held instead of dividends worth Sh2.24 billion.
Co-operative Bank #ticker:COOP has gone ahead with its dividend pay-out, going as far as bringing forward its Sh1 per share or Sh5.8 billion dividend on April 23.
