ComBank announces Rs. 6.50 per share dividend in cash and scrip

Commercial Bank has announced a first and final dividend of Rs. 6.50 per voting and non-voting share for the financial year 2020, involving a cash dividend and a scrip dividend.

The cash dividend will be Rs. 4.50 and the balance in the form of scrip. The move is subject to shareholder approval at the Annual General Meeting scheduled for 30 March.

The ex-dividend date (XD) will be 31 March, and the dividend will be paid on or before 23 April.

The number of Commercial Bank voting shares in issue is 1 billion and non-voting is 67.9 million. The amount to be capitalised is Rs. 2.198 billion for voting and Rs. 135.9 million for non-voting. Consideration of a share as at 16 February was Rs. 87.70 (voting) and Rs. 76.80 (non-voting).

The number of shares to be issued as scrip dividend is 25.06 million voting and 1.77 million non-voting. 

The proportions at which the shares are to be issued are 1 for 43.85 (voting) and 1 for 38.4 (non-voting).

Commercial Bank said the number of voting shares will vary since the bank is required to accommodate new shares to be allotted under the existing ESOPs from 17 February up to four market days prior to the ex-dividend date.

The stated capital of the company as at 16 February was Rs. 52.2 billion.

In FY2020 Group Profit Before Income Tax recorded an improvement of 6.68% over the previous year to Rs. 24.520 billion. Profit Before Tax for the fourth quarter alone was up by an impressive 30.25% to Rs. 8.126 billion. Profit After Tax declined by 1.9% to Rs. 17.087 billion.  However, net profit for the fourth quarter improved by a marginal 0.16% to Rs. 5.912 billion. At the bank level, a Profit Before Tax of Rs. 23.511 billion was recorded for 2020 up 5.25% from the previous year and Profit After Tax of Rs. 16.373 billion, a reduction of 3.83%.