The group’s dividend policy is to consider an interim and a final dividend in respect of each financial year. The dividend is set with reference to underlying core operating earnings taking cognizance of the need to:
- maintain regulatory capital solvency with an appropriate margin which anticipates regulatory developments and economic and market volatility;
- ensure the legislative requirements with regards to solvency, liquidity and good corporate governance; and
- retain earnings and cash flows to support investments in the group’s growth initiatives.
After consideration of the above, the group’s dividend policy is set at a target range of 1.0 to 1.5 times earnings cover, recognising that some earnings fluctuations are to be expected. The annual dividend will reflect the board’s view of the earnings prospects over the entirety of the cycle.
At its discretion, the board may also consider special dividends where appropriate. Depending on the perceived need to retain funds for expansion or operating purposes, the board may pass on the payment of dividends.