As at 30 June 2019, MTN had provided a total of GHS 2.84 billion float to their partner banks through their mobile money operations.
This was stated in their posted six-months interim results. The float is a strong liquidity boost for the banking industry. The amount represents 30.9% of the total capitalisation of all the 23 banks in the country. This has proven to be a positive collaboration between telecom and banking driven by the Fintech.
In the early days of mobile money banks saw the drive as a threat to their business as the innovation would hamper their deposit performance. However, over time the innovation has proven a game changer in financial inclusion and the way funds move across the population. The MTN float for the banks could only grow as the organisation continues to push to convert registered users into active users. After 10 years of running the mobile money in Ghana, MTN can boast of 14.2 million momo subscribers, with 8.5 million being active users as at end of June 2019. It may be recalled that their group CEO Rob Shuter has indicated that MTN is aiming to be the biggest bank in Africa.
In the half-year interim results MTN is additionally rewarding shareholders by paying interim dividend. A dividend of GHS 0.02 per share was declared on 01 August 2019. Investors benefit from 2.5% dividend per share price. As at the date of declaration the number of ordinary shares in issue was 12.2 billion shares. Dividends are expected to be remitted to investors bank accounts or momo wallets by Friday, 13 September 2019. Investors can catch a bit of the interim dividend if they purchase any MTNGH shares by 23 August 2019, which is termed the ex-dividend date. Any purchases after the ex-dividend date would not benefit from the interim dividends.
The Year of the Customer
The telecom giant expect to reward customers more in the year 2019 with great experiences in net and mobile money services while creating value for the shareholders.