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Equity Group Holdings has approved a dividend payout of Sh15.1 billion for the second year running, a 36% payout ratio from the previous year.
This is in line with the group’s Dividend Policy, reflecting a sustained return to shareholders amid an operating environment marked by volatility and will position Equity Group as an employer of choice in the various markets and sectors where it operates.
The payout amounts to a 36% payout of the Kshs.43.7 billion Profit After Tax or Kshs 11.1 earnings per share and a dividend yield of 11.9% on the 2023 year-end closing share price of Kshs.33.65 or 800% on par value.
The shareholders approved the creation of the Equity Group Employee Share Ownership Programme (EGH ESOP) and the EGH ESOP Trust Deed and Scheme Rules, positioning Equity Group as an employer of choice in various markets and sectors.
Isaac Macharia emphasized the Group’s commitment to assisting clients during turbulent economic times.
“We have prioritized providing customers with relevant, affordable, and easily accessible services and products since our inception. We recognize that each account or transaction represents a unique individual or organization with specific needs and goals.” He stated.
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The approvals also include the creation of a banking holding company, the incorporation of a health insurance subsidiary to undertake health insurance underwriting in Kenya, and the ratification of the Cogebanque acquisition, leading to Equity Bank Rwanda being a respectable position two in the market with an 18% market share.
Equity Group CEO James Mwangi reported that the Group performed well, with an optimistic outlook for continued expansion and shared value generation.
“We are now a systemic bank in East Africa, which is one of the world’s fastest-developing regions. Despite the adverse macroeconomic environment, Equity has responded with agility to ameliorate market conditions in the region.” He stated.
“We achieved key targets under the Plan, increasing client numbers to 19.6 million from 17.7 million. Borrowing firms climbed to 0.3 million, while borrowing customers remained at 0.84 million. Overall, we have made considerable progress in implementing the Plan. The ARRP focuses on unlocking Africa’s primary sector, but this year’s main issue was nature and climate change.” He added.
Looking to the future, Equity continues to view sustainability as offering a viable path for global advancement, presenting an opportunity to establish economic, market, and social models that prioritize and reward sustainable practices.
This is particularly crucial for Africa, a continent endowed with a vast wealth of natural resources.