Banks reward shareholders with N29.68 billion interim dividend pay-out

by | August 28, 2017 10:53 am

Shareholders of 4 Nigerian banks will receive an interim dividend of N29.68 billion for 2017 financial year as a liquidity ease in the foreign exchange market continues to underpin lenders earnings.

The banks recorded a double digit growth in profit, which gives them the leeway to make payment out of earnings to shareholders.

The lenders are Zenith International Bank Plc, Access Bank Plc, United Bank for Africa, (UBA) Plc, and Guaranty Trust Bank Plc.

Zenith Bank recommended the highest interim dividend of N7.85 billion, which is 0.25k per share, with a closure date of 21st August of 2017.

Its shares have gained 56.61 percent since the start of the year.

Zenith Bank performance was impressive in the second quarter as net income surged 112.38 percent to N75.31 billion while gross earnings were up 75.69 percent to N380.44 billion.

Guaranty Trust Bank followed with N7.35 billion or N0.25 per share pay-out with the closure date for payment to shareholders being 24th August 2017.

The lenders stock has gained 71.28 percent since the start of the year. Net income for the six month through June was up 17 percent to N83.56 billion as margins improved.

UBA Plc is paying out N7.25 billion or N0.20 kobo per share as its shares gained 116.15 percent since the start of the year.

Net income for the six year through surged by 56.19 percent to N42.34 billion as the lender continues to spread grow its operations in the rest of Africa.

Shareholders of Access Bank are to receive an interim dividend totalling N7.23 billion or 0.25 kobo per share, with a closure date of 7th September 2017.

Access Bank shares have rallied 65 percent since the start of the year.

For the first six months through June 2017, Access Bank’s net income spiked by 17.30 percent to N39.46 billion from N33.63 billion as at June 2016.

Earnings per share was 138k, topping analysts’ average estimate of 131k, according to 7 of the 10 analysts surveyed by BusinessDay.

The growth in profit was underpinned by an item of N59.0 billion net foreign exchange income.

Tier one lenders in Africa’s most populous nation have continued to improve on their respective winning streak since the central bank introduced a new window called the Investors’ and Exporters that eased liquidity in the foreign exchange market.

The Nigerian Stock Exchange Banking Index has gained 41.52 percent since the start of the year.