African Bank, emerging from the aftermath of the African Bank Investments collapse, has announced its second dividend, matching the R100 million payout from its inaugural shareholder distribution a year ago.
The dividend, set at 20 cents per share, will be distributed among African Bank’s shareholders, including the Reserve Bank with a 50% share, and the Government Employees Pension Fund (GEPF) with a 25% stake.
The remaining 25% is held by a consortium of South Africa’s major banks, such as FirstRand (7%), Standard Bank (6%), Absa Trading and Investment (5%), Nedbank (4%), Investec (2%), and Capitec (1%). CEO Kennedy Bungane stated that the dividend demonstrates the bank’s commitment to shareholder value creation and reflects progress in alignment with the Excelerate25 strategy.
African Bank, often referred to as the ‘good bank,’ emerged from the collapse of its former parent in 2014. Despite challenges, it reported a year-end profit of R505 million, down 31.4%, citing increased provisions to cover potential bad loans, while net loan advances rose by 41% to nearly R32 billion.
