Commonwealth Bank’s 6000-plus shareholders will have a little more money to spend during the holidays this year when the Bank issues a pre-Christmas extraordinary dividend of $.06 per share.
The extraordinary dividend pay-out is slated for November 29 and will benefit those who purchased shares prior to November 22. Along with regular quarterly dividends, the Bank that shares 65% of its profits with shareholders will pay a total of $.30 per share in fiscal 2013, nearly $30 million in value.
Since the largest Bahamian Bank went public in the year 2000 with an oversubscribed initial public offering, it has paid consistent quarterly dividends and in most years, at least one additional extraordinary dividend, a combination that has helped build stock retention, bank loyalty and share value, even during economically challenging periods.
Last week, the Bank released its third quarter results, reporting $39.3 million in Comprehensive Net Income for the first nine months of the fiscal year, a 35% increase over the same period last year. The Bank has assets of B$1.44 billion, is capitalized at levels far exceeding Central Bank requirements and is running at less than half the industry standard for non-performing or impaired loans.
The dramatic increase in net income year-over-year was attributed largely to a result of lower costs associated with reductions in non-performing and charged off loans.
Despite the health of the institution with branches in Nassau, Grand Bahama and Abaco, its Executive Chairman William B. Sands, Jr., said Commonwealth Bank remains “cautiously optimistic” about the economy and is closely monitoring pending tax and regulatory regime changes.
Diane Phillips and Associates
