The Board of Directors of Commonwealth Bank Limited has announced a final extraordinary dividend of six cents per share based on 2016 results of $57.4 million in net income.
The extraordinary dividend, approved at the February 2017 Board meeting will be payable on March 22, 2017, with a record date of March 15, 2017 to more than 6,000 shareholders.
This dividend will bring total dividend payments to $0.36 per share for 2016 year and continues a trend of quarterly dividends plus extraordinary dividends that help build sustaining value for the bank’s share price.
“The bank believes that it is important to share its success with shareholders, especially in these challenging times,” Executive Chairman William B. Sands reported. “This extraordinary dividend is based on our 2016 results, although for accounting purposes it will be recorded in our 2017 financial year.
The extra-ordinary dividend is in keeping with the long established policy of the bank paying out an average 65% of its earnings after Preference Share dividends to its over 6,000 common shareholders.”
Despite the challenging economic environment, the bank achieved strong, positive results. Total assets climbed to over $1.6 billion, an increase of 5% from 2015 while net income of $57.4 million very closely paralleled 2015’s net income of $57.7 million.
“I am extremely proud of Commonwealth Bank’s performance in 2016. Despite the slow economy coupled with the impact of Hurricane Matthew, the Bank was able to sustain its longstanding pattern of growth and profitability by following its proven business model,” said Mr. Sands.
He continued, “The Bank finished 2016 with an extremely strong balance sheet and continued to maintain strong capital and liquidity positions, both greatly exceeding statutory reserve requirements.
Our level of non-performing loans is less than one third of the industry average and speaks to the quality of loans written by the Bank. Those factors make us well-positioned to continue building on our past successes and take advantage of new opportunities.”
“A core element of the bank’s continuing success is our team of dedicated employees, without whom we would not have achieved such great results in 2016.
While it is clear that 2017 will be a challenging year, our internal assessments confirm that we remain on the right path to allow the bank the best opportunities to maximize shareholders’ returns.
We will continue to build on the fundamentals that have assisted the bank in achieving its leadership position and sharing our success with Bahamians,” Mr. Sands concluded.
Commonwealth Bank operates 11 full service branches in New Providence, Grand Bahama and Abaco and employs more than 540 persons.
Diane Philip & Associates
