Absa South Africa Rules Out Dividends With Profit Down 40%
- Lender conserving cash amid fallout from coronavirus pandemic
- Rivals Standard, FirstRand may distribute surplus capital
Outside the Absa Group Ltd. headquarters in Johannesburg, South Africa.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Absa Group Ltd. said it’s unlikely to pay an ordinary dividend this year as the South African bank conserves cash to deal with the economic fallout from the coronavirus pandemic.
Earnings before one-time items and accounting adjustments will probably decline more than 40% from a year earlier, Johannesburg-based Absa said in a statement on Thursday. It’s withholding payouts despite having strong buffers and forecasting “improved second-half capital generation.”