Shareholders Of GTCO, UBA, Three Others Get N79.2bn Interim Dividend In H1 2023
Returns to the shareholders of Guaranty Trust Holding Company Plc (GTCO), Zenith Bank Plc, United Bank for Africa Plc (UBA) and three other banks were boosted in the first half of the year, leading to a declaration of N79.2 billion interim dividend for the half year ended June 30, 2023.
The other three banks are Access Holdings Plc, Stanbic IBTC Holdings Plc, and Fidelity Bank Plc.
The improved dividend in H1 2023 can be attributable to an impressive increase in profit amid a decline in dividend yield.
Specifically, the six banks reported N1.21 trillion profit after tax in H1 2023, an increase of 200.5 per cent from N401.7 billion reported in H1 2022.
Stanbic IBTC Holdings with about N67.92billion profit in H1 2023 from N30.67billion in H1 2022, declared N1.50 for every 50 kobo ordinary share as an interim dividend, representing N19.45billion total interim dividend expected to be paid to shareholders.
GTCO, Zenith Bank and UBA in H1 2023 declared N0.50 for every 50kobo ordinary share interim dividend each, amounting to N14.72 billion, N15.7 billion and N10.66 billion respectively.
GTCO announced a historical N280.48billion billion profit in H1 2023, an increase of 261.6 per cent from N77.56 billion reported in H1 2022, while Zenith bank reported N291.73billion profit in H1 2023 from N111.41billion in H1 2022 while Zenith bank reported N291.73billion profit in H1 2023 from N111.41billion in H1 2022.
UBA, in the period, declared the highest profit in the banking sector when its profit rose by 437.76 per cent to N378.24 billion in H1 2023 from N70.34 billion in H1 2022.
Also, Access Holdings proposed N0.30 as an interim dividend, amounting to N10.66 billion in value as shareholder return on investment. Access Holdings shows its profit at N135.44 billion in H1 2023, an increase of 52.37 per cent from N88.89 billion in H1 2022.
In addition, the management of Fidelity Bank proposed an N0.25 per share interim dividend, translating into N8 billion returns expected to be shared among shareholders who invested in the bank.
Fidelity Bank disclosed N61.99 billion profit in H1 2023, an increase of 165.99 per cent from N23.31 billion in H1 2022.
The Chief Executive Stanbic IBTC, Dr Demola Sogunle in a statement said, “The first half of 2023 was an eventful one for us as an organisation within the Nigerian operating environment. Events such as the general elections and cash scarcity led to relatively slower business activities at the beginning of the year, causing the Stanbic IBTC Bank Purchasing Manager Index (PMI) to print below 50 index points.”
According to him, the Group reported significant growth in key income lines during the period under review.
“The Group’s profitability increased by over 100 per cent year-on-year (YoY) driven by growth across our revenue streams. Interest income grew by 62per cent YoY, mainly due to higher yield and volume of loans and investments, which is in line with our efforts to support our clients through loan offerings and investment opportunities,” he said.
Sogunle added, “We have made very good progress in the first half of the year and we will continue to work towards the delivery of our guidance for 2023.”
Over the years, these banks’ dividend payout has contributed to stock price appreciation and it is undoubtedly reflected in the last eight months of 2023.
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