JOHANNESBURG (Reuters) – South African lender Commonplace Financial institution reinstated its dividend on Thursday however saved it 76% decrease than final yr, reporting a payout of 240 cents ($ 0.1593) per share.

It additionally reported a 43% drop in internet earnings per share – the principle measure of revenue in South Africa – to 1,002.6 cents, on the excessive finish of its forecast vary and from 1,766.7 cents a yr greater. early.

Commonplace Financial institution stated final yr it was in talks with the South African Reserve Financial institution, which had requested lenders to droop dividends amid the COVID-19 disaster, about restoring funds, and was one of many lenders thought-about most certainly to take action. when the central financial institution cautiously eased its forecast in February.

“Whereas future dividends stay topic to earnings and capital ranges, the group’s dividend payout ratio is anticipated to extend over the medium time period to low historic ranges (45% – 55%),” he stated. in its press launch.

Commonplace Financial institution, Africa’s largest lender by property, warned earlier in March that earnings may fall as a lot as 50%, stunning some buyers who stated it was a bit worse than anticipated, however did not haven’t defined the rationale for the decline.

Like all South African banks, it was hit onerous by rising unhealthy debt prices and provisions and falling rates of interest – which it stated had harm the second half of the yr.

The financial institution stated credit score impairment prices rose to R20.6 billion, 2.6 occasions that of 2019, and raised an extra R500 million to account for the lingering uncertainty.

(1 USD = 15.0629 rand)