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Jamaica: NCB opts out of dividend payments

The NCB Financial Group has opted not to declare and distribute dividends to shareholders owning more than one per cent of issued shares despite getting clearance from the Bank of Jamaica (BOJ) to do so.

In announcing its decision not to recommend the declaration of a dividend at this time, NCB made note of the BOJ’s caution that financial institutions “remain prudent in their decisions to declare and distribute dividends.”

The central bank, in May 2020, obtained an agreement with financial holding companies and deposit-taking institutions to suspend the distribution of dividend to relatively large shareholders as a liquidity buffer under COVID-19 conditions.

But on Monday, April 6, 2021, the BOJ announced that institutions could choose to resume the distributions of dividends to shareholders owning more than one per cent of issued shares that had been declared for their 2019 and 2020 financial years.

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