Investors in six Nigerian financial institutions received around N366.93 billion in final dividends in 2023.
The PUNCH’s review of audited financial statements submitted with the Nigerian Exchange Limited shows that the 2023 final dividend distribution is around 30.94% greater than the previous year.
The six banks whose results were assessed handed out N280.22 billion in dividends in 2022.
The 2023 audited financial statements of Access Holdings, Wema Bank Plc, Zenith Bank Plc, Guaranty Trust Holding Company Plc, United Bank for Africa, and Stanbic IBTC Holdings were reviewed.
The board of Access Holdings proposed a final dividend of N1.80k (December 2022: N1.30 Kobo) per ordinary share of 50 Kobo on the 35,545,225,622 issued ordinary shares.
Although the proposed dividend is still subject to shareholder ratification at the group’s next annual general meeting, investors will receive N63.98 billion as the final dividend for the year 2023, up from N46.21 billion given in 2022.
Access Holdings had previously declared an interim dividend of 30 kobo in 2023.
Zenith Bank has declared the largest final dividend so far for 2023, at N3.50, increasing the total payout to shareholders to N109.89 billion, up from N91.05 billion the previous year.
In addition to the N3.50 final dividend, an interim dividend of N0.50 was issued, bringing the total payout to N4 per share (2022: N3.20). The payment will be paid from the bank’s retained profits accounts as of December 2023.
Zenith Bank’s retained earnings totalled N1.18tn.
UBA stockholders will receive a final dividend of N78.66 billion at N2.30 per share, paid from the company’s retained earnings.
The bank issued an interim dividend of N0.50 per share in September, bringing the total dividend for the year to N2.80.
Stanbic IBTC Holdings board proposed a N28.51 billion final dividend for 2023, up from N25.91 billion in 2022, following an increase in the payout to N2.20 per unit.
Wema Bank stockholders will get an N6.43 billion final dividend at N0.50, an increase over the N3.86 billion paid in 2022.
In its annual reports, Wema Bank said that “the payment will be made from the audited earnings of 2023 and not from the accumulated reserves in accordance with regulatory policy.” The dividend payment is consistent with the bank’s dividend policy and will significantly benefit our shareholders.”
However, GTCO stockholders will see their final dividend payout fall to N79.46 billion at N2.70 per share from N82.40 billion at N2.80 per unit in 2022.
Speaking on the improvement in bank dividend payouts, Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, stated, “We are really pleased with the outcomes and dividends declared by the companies and banks. That they were able to pay something despite the difficult business environment is something to be thankful for.”
Igbrude urged the country’s economic administrators to implement business-friendly policies to support business growth and provide investors with a positive return on investment.
Bisi Bakare, President of the Pragmatic Shareholders Association, stated in an interview with The PUNCH that investors want substantial returns on their investments. We are quite pleased with the increase in dividend payouts from banks who have published earnings thus far.
“Yes, they paid more than we expected, but like Oliver Twist, we always want more. In a word, we are pleased and hope that the dividend for the coming year will be higher than in 2023.”
Earlier this week, some analysts predicted that banks would incentivize their shareholders with large dividend distributions ahead of capital-raising efforts to fulfill the Central Bank of Nigeria’s new standards.
Nigeria’s national bank said in March that it would evaluate the capital requirements for commercial, merchant, and non-interest banks, as well as promoters of new banks in the country.
