June 10, 2024 | 3 days ago

The bank achieved a net profit of 38 billion dinars in 2023. CPA will distribute 25 billion dinars in dividends to shareholders.

The bank plans to allocate over 1.9 billion dinars as legal reserves. This amount will be supplemented by 11.1 billion dinars for optional reserves, as indicated in the draft resolution to be submitted to the General Assembly on June 27.

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The General Assembly (GA) of Crédit Populaire d’Algérie (CPA) will be held on June 27. This will be the first meeting of its kind following the opening of the bank's capital, and it will be open to new shareholders who must register by June 20 on the shareholders' register provided by the central depository, Algérie Clearing.

In addition to voting rights, these shareholders will have the right to review the bank's results and receive dividends, which has been planned to attract as many shareholders as possible for the successful stock market introduction. CPA confirmed this in the draft resolution to be submitted to the GA, dedicating an amount for dividends.

CPA achieved a net profit of 38 billion dinars (Bn DA) from a total balance sheet of over 3,331.68 Bn DA. The net profit increased by 1% compared to 2022 (27.5 Bn DA), and 25 Bn DA is earmarked for dividends for the 2023 fiscal year, which is 65.79% of the net profit.

The fixed amount will be divided over 200 million shares, of which 48,958,634 have been subscribed (an opening rate of 24.48%). This means that for each share sold, CPA will pay a dividend of 125 DA, yielding a return of 5.45% per share, with the share price set at 230 DA - and 2100 DA for bank employees, who represent 75% of the shareholders.

The transfer will be made directly to the bank accounts of individuals and companies that subscribed. Additionally, the bank plans to allocate over 1.9 Bn DA for legal reserves, supplemented by 11.1 Bn DA for optional reserves, as indicated in the draft resolution to be submitted at the GA on June 27.

According to the published balance sheet, the bank’s share of equity capital represents 68.28% of its own funds. This is explained by the capital increase carried out in November 2023, which raised the capital from 48 Bn DA to 200 Bn DA two months before the public sale operation (OPV) for the sale of 30% of the capital.

The first phase of the operation took place between January 28 and February 28 and was extended to March 14, ultimately succeeding as noted by Youcef Bouzenada, president of the Commission for the Oversight of Stock Market Operations (Cosob), during the launch of digital stock orders last week.

The remaining 5.52% of the tranche to be sold (30%) is expected to be acquired by other shareholders, probably institutional investors, by the end of the year. This period will also see the launch of the process for the Banque de Développement Local (BDL) for a similar level of opening, i.e., 30% of its capital.

June 11, 2024 | algeria-logo