Capital not a constraint on dividends for South Africa’s FirstRand: CEO

JOHANNESBURG (Reuters) – South Africa’s FirstRand has enough capital to absorb dividend payments, its Chief Executive Alan Pullinger said on Thursday, though the bank opted not to declare a final dividend in line with guidance from the country’s central bank.

“We had the capital to absorb a dividend payout… and I think there’s also sufficient surplus there to absorb some of the regulatory issues that are coming at us, plus some small organic expansion if we chose to undertake that,” he told investors during a presentation.

The South African Reserve Bank has recommended lenders do not pay out to shareholders in order to preserve capital during the coronavirus crisis.

(Reporting by Emma Rumney; Editing by Jan Harvey)