Equity Group recently held its 20th Annual General Meeting as the shareholders voted in favor of all proposals by the Board of Directors with a large majority through electronic means.
The approvals include a dividend payout of Ksh 15.1 billion for a second year running which is a payout ratio of 36% compared to 33.6% the previous year. This is in line with the Equity Group Holdings Dividend Policy. The payout depicts a sustained return to shareholders amid an operating environment that’s grappling with volatility marked by inflation, widespread currency depreciation, and interest rate hikes.
The approvals also include the creation of a banking holding company that will consolidate the activities of all the banking subsidiaries within the Group. Currently, Equity Group operates banking subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of Congo (DRC). Equity Group will now operate under four groups, the Banking Group, Insurance Group, Technology Group and the Foundation Group.
To further entrench its footprint in the insurance sectors, Equity shareholders gave the greenlight for the incorporation of a health insurance subsidiary to undertake health insurance underwriting in Kenya. The health insurance company will be a subsidiary of Equity Group Insurance Holdings Limited which already undertakes a life insurance and general insurance business in Kenya.
The Shareholders ratified the Cogebanque acquisition which led to Equity Bank Rwanda being a respectable position two in the market with an 18% market share. This creates opportunity for the Rwanda economy as it can now support large transaction in the market.
Speaking at the AGM, Dr. James Mwangi, Group MD and CEO said, “The Ksh 4 per share dividend amounts to a 36% payout of the Ksh 43.7 billion Profit After Tax or Ksh 11.1 earnings per share and dividend yield of 11.9% on the 2023 year-end closing share price of Ksh 33.65 or 800% on par value. We are now a systemic bank in East Africa, a region that has emerged among the fastest growing regions in the world. Our outlook remains positive, despite the challenging macroeconomic environment, Equity has adapted with agility and responsiveness to mitigate the challenging market conditions across the region.”