It is anticipated the new linked units will be listed on the BSE on
The bank is a public company listed on the
The company said this in response to the offer by the company of scrip in lieu of 100 per cent of the distribution (of dividend and interest) on linked units, declared in respect of the year ending
ABSA Bank of Botswana Limited have applied to theBotswana Stock Exchange (BSE) to seek approval for the listing of the 13,767,297 new linked units.- This means that the number of issued linked units will increase from 460,336,206 to 474,103,503.
- It is anticipated the new linked units will be listed on the BSE on
November 22, 2022 . Absa Bank Botswana Limited condensed consolidated interim financial statements for the period endedJune 30, 2022 , highlighted that profit before tax grew by 36 per cent year on year, signaling a positive recovery from theJune 2021 position.
A scrip dividend is when a company instead of automatically giving their shareholders a cash dividend, gives them the choice of either receiving a cash dividend or the equivalent in additional shares of the company.
For example, let's say company X's share price is
If you elect to receive cash, you can still use the money to buy additional shares in the company, but if you elect to receive additional shares, the scrip dividend just reinvests the dividend for you.
According to a statement released on
"Unitholders holding 132,717,953 linked units, representing 28.83 per cent of linked unit in issue elected to receive linked units (in lieu of cash) of 50 per cent of the distribution (of dividend and interest)."
"Unitholders holding 194,451,049 linked units representing 42.24 per cent of the issued linked units did not elect to receive linked units (scrip) in lieu of 100 per cent of the distribution payable to them, and will receive the cash distribution net of withholding tax, where applicable," read the statement.
The firm further added that payment of the distribution will be made on or before
The statement stressed that after the calculation of withholding tax payable on the distribution due to each such unitholder which is liable to such tax 13,767,297 new linked units will be issued.
This performance was achieved by positive trajectory on all material lines of statement of comprehensive income with total revenue improving 11 per cent year on year according to the bank. This is also consistent with recovery in business momentum.
Pre-provision profit also grew year-on-year by 21 per cent leading to annualised Return on Equity (ROE) growing to 24 per cent as at
According to
Further, expected credit losses saw an improvement year on year decreasing significantly by 72 per cent due to improved and stable portfolio performance, positive movement on macroeconomic inputs.
There was a strong performance in the bank's recoveries portfolio, contributing to the overall positive performance of expected credit losses. This led to the loan loss ratio improving to 0.16 per cent from 0.59 per cent for period ended
The bank, in their report, also highlighted that this was achieved by leveraging off the digital enablement put in place which brought some efficiencies, as well as various other cost management initiatives effected. Cost to income ratio fell by 4 per cent and ended at 54 per cent for the period under review, resulting in positive income statement jaws of 7 per cent.
Meanwhile, Barclays sold shares in the Group. This was published on the
Barclays agreed to sell its entire remaining 7.44 per cent which is 63 072 652 shares of the total ordinary shares of the Group through an accelerated book build placing, at a price of R169 per share. Following the sell, Barclays no longer owns any ordinary shares of the Group.
ABSA closed its last trading day on
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