Times Of Swaziland: FNB PROJECTS AROUND E170M FINAL DIVIDEND

FNB PROJECTS AROUND E170M FINAL DIVIDEND
================================================================================
Nhlanganiso Mkhonta on 18/09/2024 15:26:00


MBABANE - FNB Eswatini CEO, Dennis Mbingo says they expect their final dividend
of the year to shareholders to be around E170 million.
Mbingo was speaking during the presentation of the bank’s 2024 annual
financial results on Monday, at the bank’s headquarters in Ezulwini. It is
worth noting that last year, FNB Eswatini achieved a milestone by localising its
shareholding and listing on the Eswatini Stock Exchange.
Listing
The Chief Executive Officer (CEO) noted that their listing on the ESE
represented a commitment to increasing local investment opportunities and
enhancing market transparency.
“For the first time, FNB Eswatini is no longer reporting results based solely
on international shareholding. Instead, 24.9 per cent of the bank is now owned
by local shareholders through various schemes, reflecting the bank’s alignment
with its shared prosperity model.” Mbingo emphasised the importance of this
development and expressed openness to further collaboration with local entities,
to address their needs and foster stronger partnerships. The bank recently paid
an interim dividend of E84.5 million for the first six months of the year and
noted that they expect their last dividend of the financial year to exceed E170
million.
Shares
This strategic move of listing on ESE taken in December last year, saw 24.9 per
cent of the bank’s shares being held by local institutions, which include the
Public Service Pensions Fund (PSPF) at 7.40 per cent, Swaziland Empowerment
Limited (SEL) at 4.92 per cent, the Eswatini National Provident Fund at (ENPF)
at 4.46 per cent, and the FNB Eswatini Employee Share Trust owning 4.99 per
cent. The remaining local shareholders include Old Mutual Swaziland with 1.20
per cent, Sibaya Umbrella Fund with 1.21 per cent and Swaziland National
Association of Teachers (SNAT) Co-operative with 1.00 per cent.
The bank sold in aggregate 26 600 000 ordinary shares to institutional investors
selected by the company, at a sale price of E14.83 per ordinary share, by way of
a private placing.
FNB Eswatini was the ninth company and the second bank to be listed on ESE,
following Nedbank Eswatini. Otherwise, the eight companies that had been listed
on ESE are Nedbank Eswatini, Royal Eswatini Sugar Corporation (RES Corp),
Swaziland Empowerment Limited (SEL), Swaziland Property Limited (SWAPROP),
Greystone Partners, SBC Limited, Inala Capital and Nkonyeni Pre-Cast (NPC)
Limited. NPC Limited was the latest company to be listed on ESE as it was listed
just last month. By definition, listing means the formal admission of securities
of a company to the trading platform of the exchange.
Growth
It is defined as a significant occasion for a company in the journey of its
growth and development. It enables a company to raise capital, while
strengthening its structure and reputation.
The main purposes of the listing of FNB Eswatini are to: (i) diversify and
increase the local ownership of FNB Eswatini in Eswatini; (ii) boost the
corporate profile of FNB Eswatini; and (iii) contribute to the development and
expansion of the capital markets in Eswatini. Speaking during a session with the
media at the end of September, where the bank presented its annual financial
statements for the year ended June 30, 2023,