12 listed companies have declared a total interim dividend payout of N231.718 billion for the first half of 2024.
In the period under review, the financial institutions operating in Nigeria, and Sub-Saharan African countries were faced with inflationary pressure, and sustained hikes in monetary policy parameters that drained liquidity in the banking system, among other challenges.
United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), Zenith Bank, Access Holdings, Stanbic IBTC Holding, Fidelity Bank, United Capital, Okomu Oil, Transcorp Power, Transnational Corporation (Transcorp), Transcorp Hotels and Africa Prudential have established a pattern of twice-a-year dividend payment, with interim dividend declared on first half reports ended June 30, 2024. The dividends were paid out of profits earned in the first half of the year.
Dividend has remained one of the key factors that traditionally drive market activities and aid investment decisions towards stocks across the globe, and the Nigerian bourse is not an exception.
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits as it allows shareholders to benefit from earnings growth through both interim and final dividends. Interim dividends can follow the same strategy as final dividends, it is a dividend payment made before a company’s annual release of full-year financial statements. More often, Interim dividends are usually paid after the half-year financial statement has been released.
For the period ended June 31, 2024, UBA, in line with its dividend policy, proposed an interim dividend of N68.398 billion, representing N2.00 per share.
Okomu Oil declared an interim dividend of N8.00 per share, amounting to N7.631 billion; Stanbic IBTC Holdings paid an interim dividend of N2.00 per share, amounting to N25.914 billion; while Zenith Bank and GTCO proposed an interim dividend of N1.00 each, amounting to N35.1 billion and N29.431 billion, respectively.
Also, Transcorp Power, United Capital, Transcorp Hotel, Transcorp and Africa Prudential proposed a half year return of N1.50, 90 kobo, 10 kobo, 10 kobo and 15 kobo per share each, amounting to N11.25 billion, N5.4 billion, N1.024, N4.065 and N0.3 billion respectively.
Fidelity Bank offered an interim dividend of 85 kobo per share, amounting to N27.210 billion, while Access Holdings paid a total dividend of N15.995 billion, representing 45 kobo per share.
Analysts noted that these companies in H1 2024, exhibited significant growth in various financial metrics, such as profit before tax, total assets, and net profit margin.
They noted that the companies have shown resilience in adapting to changing market conditions, and their strategic decisions will continue to impact their financial performance in the coming quarters.
Speaking on the UBA’s financial performance in H1, group managing director/chief executive officer, Oliver Alawuba, highlighted the Bank’s commitment to consistently delivering value to its shareholders.
He said, “UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals.
He added that “in line with the Bank’s culture of paying both interim and final cash dividends, UBA has declared an interim dividend of N2.00 per share for every ordinary share of N0.50 each held by its shareholders, representing a 300 per cent increase compared to the N0.50 declared in the similar period of 2023.
Zenith Bank stated that “in maximising value to its shareholders, the Group has declared an interim dividend of N1.00 per share. This represents the highest half year dividend pay-out in its history.”
Also, the group chief executive officer of GTCO, Segun Agbaje, said, “despite the uncertainties in the operating environment, our performance in the first half of the year, where we recorded our highest profit to date, is a testament to the resilience and adaptability of our business model.”
