Financial services group Old Mutual has said it will proceed with paying shareholders about R3.5bn in dividends on May 4.

Several JSE-listed counters have opted to cancel, reduce or delay dividend payments due to uncertainty over the Covid-19 pandemic. The Reserve Bank has also given guidance to SA banks to hold on to dividends in 2020 and cut bonuses to shore up their balance sheets.

Old Mutual, which has about 4.7-billion shares in issue, declared a final dividend of 75c per share for its year to end-December.

“The company has confirmed that its balance sheet remains resilient, and in a strong liquidity position,” the company said in a statement.Furthermore, Old Mutual is able to meet all its financial obligations and honour payments for customer claims.” 

In afternoon trade on Thursday, Old Mutual’s share price was down 0.59% to R11.81, having lost 40% so far in 2020. Over the same period, the JSE all share has given back just less than 15%.


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