This year too, Unilever tops dividend payers’ list

KATHMANDU, SEP 08 -

After posting handsome profits in the last fiscal year, it’s dividend announcement time for companies listed on the Nepal Stock Exchange (Nepse). The companies announce dividend before they go for the annual general meeting.

Among the companies that have announced dividend, Unilever Nepal has announced the highest 760 percent cash dividend. The company has always been the leader when it comes to distributing dividend to shareholders. Six commercial banks have so far announced dividend and, Nabil Bank is at the top. “As most of the banks’ profits have increased, they have also announced handsome dividend,” said stock analyst Rabindra Bhattarai.

The banking sector is the heavyweight in the country’s capital market, and good profits and dividend of banks and financial institutions (BFIs) make a positive impact on Nepse.

Nabil Bank, which posted a net profit of Rs 2.23 billion, has decided to distribute 40 percent cash and 25 percent bonus shares to its shareholders. Last year, the bank had given 40 percent cash dividend and 20 percent bonus shares.

Everest Bank has announced 50 percent cash and 10 percent stock dividend. Last year, it had offered 30 percent bonus shares. Everest recorded a net profit of Rs 1.47 million.

Nepal SBI Bank has proposed 12.5 bonus shares and 7.5 percent cash dividend. Last year, it had offered 17.5 percent dividend.

Sanima Bank’s shareholders will be getting 10 percent stock and 0.53 percent cash dividend. Last year, the bank had given 5 percent cash dividend.  Citizens Bank International has announced 15 percent cash dividend to its shareholders. The bank had distributed five percent bonus shares and 5.53 percent cash dividend last year. Bank of Kathmandu has proposed 14 percent stock dividend.

BFIs that have already fulfilled the paid-up capital requirements are in a comfortable position to announce big dividend. They were preferring bonus shares issuance to increase the capital size in the past as per the central bank’s directive. “After continuously providing bonus shares to increase their capital base, banks this year distributed cash dividend,” said Ashoke Rana, chief executive officer of Himalayan Bank. “As the central bank also didn’t increase the paid-up capital requirement as expected, banks could offer good dividend this year.”

He said many banks were forced to announce bonus shares last year after the central bank made it mandatory for banks to maintain 11 percent capital adequacy ratio. “This year, promoters’ interest has prevailed over public shareholders who usually want bonus shares,” he added.

Among development banks, Miteri Development Bank announced 25 percent dividend—20 percent bonus shares and 5 percent cash dividend. City Development Bank has proposed 21.38 percent bonus shares and 1.12 percent cash dividend.

First Microfinance Development Bank and Bagmati Development Bank have announced cash dividend of 15 percent and 7.37 percent, respectively, while Tinau Development Bank has proposed 12 percent bonus shares. ICFC Finance has offered 10.79 percent cash dividend and 5 percent bonus shares to its shareholders. Om Finance has decided to distribute 21 percent dividend to its shareholders—20 percent bonus shares and 1 percent cash dividend.

Source: The Kathmandu Post