GCB Defends Dividend

Accra, - The Ghana Commercial Bank (GCB) today justified the payment of 100 cedis as dividend for the year ending December 31,1996 at its recent annual general meeting.

It noted that the payment of the dividend was part of a policy designed by the Board of Directors and not something that can be increased unilaterally or by the annual general meeting of shareholders.

In an interview with GRi in Accra to explain the rational behind the payment, Dr. Gordon Asare-Kyeremateng, Director of Marketing, said going by the policy of distributing 30 per cent of its net income after tax, the dividend would have been less. ''But the board on reflection, decided that the 30 per cent will be too low (75 cedis), and therefore increased it to 40 per cent (100 cedis)''.

Dr. Asare-Kyeremateng said this clarification has become necessary in view of the current perception being held by some shareholders that the 100 cedis dividend paid at the last AGM was interim. He further explained that 40 per cent of the 41.2 billion being profit after tax for 1996 was 16.5 billion cedis, adding that ''this dividend by the 165 million total shares of the bank worked out to 100 cedis per share''.