On the heels of economy instability, investors on the Nigerian stock market are anxiously awaiting leading banks dividend payout for financial year ended December 31, 2018.
Amid struggling Gross Domestic Product (GDP) in half year of 2018, decline yield on Treasury Bills and liquidity crunch, these leading banks reported improved earnings, coupled with interim dividend payout in half year results of 2018.
The likes of Guaranty Trust Bank Plc (GTBank) and Zenith Bank Plc declared interim dividend of 30 kobo per share respectively, while the management of Access Bank Plc and United Bank for Africa (UBA) proposed an interim dividend of 25 kobo and 20 kobo per share for the period under review respectively.
Capital market analysts who spoke with our correspondent said that Tier-1 banks are always competing on dividend payout to shareholders despite challenging business environment, stressing that shareholders are always on alert every financial year ended December 31.
GTBank had paid a final dividend of 240 kobo per unit of ordinary share held by shareholders in addition to interim dividend of 30 kobo per unit of ordinary share bringing total dividend for 2017 financial year to N2.70 kobo per unit of ordinary share.
Zenith Bank’s proposed a dividend of N55.57 billion (N2.45 kobo per share) as against N48.66 billion (N1.77 kobo per share) in 2016 and interim dividend paid in 2017 and 2016 was at N7.85 billion respectively.
For UBA, shareholders were paid 65 kobo for every ordinary share of 50 kobo in 2017 as against 55 kobo that was paid in 2016.
GTBank in a statement to NSE recently said the lender’s board and directors met on January 30, 2019 to consider its audited financial statement for year ended December 31, 2018 and issues relating to full year dividend.
The statement signed by the company secretary, Mr. ErhiObebeduo noted that the audited accounts would be forwarded to Central Bank of Nigeria (CBN) for approval prior to the release of the results on the floor of the NSE.
In his own, Professor of finance at Nasarawa State University, Prof. UcheUwaleke said, Tier-1 banks have constant dividend payout policy over improved earnings.
According to him, the dividend policy of these Tier-1 banks is active dividend policy as opposed to residual dividend policy.
“Banks like GTBank, Zenith Bank, UBA and Access Bank have maintained consistent dividend payout to shareholders in the last five years. Access Bank in 2017 financial year paid interim dividend of N0.25 kobo […]
