Republic Bank Ghana hopeful of resuming dividend payments in 2024
Managing Director of Republic Bank Ghana Plc, Benjamin Dzoboku, has expressed hope of the bank resuming dividend payments next year – 2024.
The MD’s hope of the bank being able to resume dividend payments is premised on the possible repeal of the dividend payment suspension directive issued by the Bank of Ghana (BoG) last year following the adverse impact of the Domestic Debt Exchange Programme (DDEP) on the banking industry.
Republic Bank Ghana suffered a total comprehensive loss of GHS 22.69m following its participation in the DDEP mainly due to the GHS 241.61m net impairment loss on financial assets.
The Bank’s total comprehensive income for 2022 stood at GHS 147.29m, a 63.89% increase from the GHS 89.87m total comprehensive income recorded in 2022.
Accounting for the impact of the DDEP, Republic Bank’s total comprehensive loss of GHS 22.69m represents a -125.25% fall in net income or profit.
“Republic Bank made a lot of profit in 2022 and had it not been for the impact of the DDEP which affected our inability to pay dividends, we would have paid dividends to our shareholders.
“But we believe that in 2024 and 2025, possibly after the BoG has reversed the directive to suspend dividend payments, we would be able to pay dividends to shareholders,” he posited, speaking to norvanreports at the Bank’s 32nd Annual General Meeting (AGM) on Wednesday, July 19, 2023.
According to the MD, Republic Bank has a dividend payout ratio policy of 40% to 60% with the 60% going to shareholders.
Despite the 2022 financial year being a challenging year as weak macroeconomic fundamentals affected the business operations of the bank, Mr Dzoboku noted that Republic Bank Ghana remains resolute as it continues to employ various tools, strategies and initiatives aimed at mitigating risks on the bank’s operations.
Adding that, the bank will continue to leverage on opportunities in various sectors of the economy to ensure it continues to build and maintain resiliency and thrive in the face of adversity.
Resolutions passed at the 32nd AGM
A total of nine (9) resolutions including two (2) special resolutions were passed at the bank’s 32nd AGM.
Resolution one (1) to seven (7) saw the re-election of directors to the Company’s Board, the fixing of remuneration of Auditors for the year 2023 and the adoption of the Annual Report and Audited Financial Statements of the Bank.
The special resolutions included the deletion of paragraph 44(1) of the Bank’s constitution and replaced with “All dividend payments to members shall be through electronic payment means such as mobile money, bank transfers and other forms of payments as may be approved by the Securities and Exchange Commission.”
