Nedbank Rules Out Special Dividend as It Eyes East Africa

Nedbank Group Ltd., the South African lender with a 20 percent stake in a West African bank, said it’s not considering a special dividend, preferring to seek expansion in the continent’s East and sub-Saharan regions.

Even with capital adequacy ratios above regulatory requirements, “we’re not contemplating a special dividend,” Mike Brown, chief executive officer of the Johannesburg-based bank, said in an interview with Bloomberg TV Africa on Oct. 27. “Our preferred use of surplus cash is for organic growth and strategic acquisitions. In southern and East Africa we want to build the Nedbank brand.”