Find visitors' favorite businesstravel Hotels And.... Book your best!

ad. Buy Grade A Premium Uganda Vanilla Beans NOW Available for Export  

Stanbic Bank to offer 4.2 billion Extra Shares

Stanbic Bank Uganda

Stanbic Bank Uganda

Monday, 9th May, 2011

STANBIC Bank has proposed an extra bonus share for every share held by existing shareholders, a bank statement has indicated.

The proposal, yet to be approved by the shareholders, will see the bank offer 4.2 billion extra shares. This will increase the paid-up capital from sh6b to sh10.2b.

A bonus issue, also known as a script issue, is a corporate action which includes offer of free additional shares.

It is one way of increasing capitalisation or an alternative to increasing the dividend payout.

In 2005, dfcu Bank offered its shareholders a one-for-four bonus share payment.

According to the annual general meeting (AGM) notice posted yesterday, stanbic will propose at the AGM a capitalisation of sh5.1b, from retained earnings, to finance the increase in the paid-up share capital.

Shareholders still holding paper certificates, however, have to do electronic registration for the new offer.

This is because “the new shares will be issued in immobilised and uncertificated form by crediting the respective members’ accounts maintained with the Securities Central Depository,” read a notice from the bank.

The bank’s directors recently recommended a dividend payout of sh7.03 per ordinary share, which is almost half of the sh13.08 paid out in 2009.

Stanbic Bank posted a massive sh23b or 24% reduction in profits in 2010 compared to the smashing 2009 performance as high costs of expansion, especially in new branches, took its toll.

The details of the bank’s performance contained in the end-of-year results showed that in 2009, Stanbic posted a profit after tax of sh95.2b, which dropped to sh72b in 2010.

Philip Odera, the Stanbic Bank chief executive officer, said the cost of building new ATMs and branches, totalling to sh20b was almost the equal to the loss in 2010.

Overall operating expenses shot to sh171.4b from sh128b.

Profitability was also affected by the reduction in interest rates on government papers like the Treasury Bills.

The bank lost almost sh12 billion due to the drop in TB interest rates.

There was no one immediately to comment on the total amount of bonus shares that will be offered as well as the reason for raising the paid up capital.

By David Mugabe: The New Vision Newspaper

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Africa Uganda Business Travel News .

Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page


feel free to ask our business travel consultants.

Book a Prisons & Correctional
Charity Tour

Farmland for Sale
Prime Commercial Property
Entebbe Rd Land 4 Sale
Over 20 Farmland Parcels
Property & Plots of Land

Uganda Online SuperMarket
Online SuperMarket

Uganda Coffee Safari
Book My Coffee Tour

Uganda Honey
Uganda HoneyComb

Subscribe to our Business Travel Newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Africa Uganda Business Travel News Digest.

Hotel Booking

Car RentalCar Hire

Africa Uganda Shipping & Handling ServicesShipping & Handling Services

Our Sponsorship Policy

Apple Guavas available
Africa Uganda Plants GuideAfrica Plants Guide

Charity Investment Guide
Changing Lives

Africa Uganda SMS Guide
Africa Bulk SMS

Poultry Investment Guide
Poultry Business Guide

Related Pages

Uganda Hotels Directory

Uganda Hotels Booking Guide

Houses U can buy Uganda Real Estate Guide Industrial/Farmland Deals

Uganda Real Estates Guide

The Mountain Gorilla

Uganda Safari Guide

Uganda Weather Today

Book My Hotel

Please note that all fields followed by an asterisk must be filled in.

Please enter the word that you see below.


Uganda Currency