Interim dividend lures investors to Oceanic Bank shares
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The stock gained N0.20 to close the day at N30.80 as investors bought 24.3 million shares valued at N752.9 million in531 deals. .
With over 400,000 shareholders, the bank said it would effectively enrich the pockets of its shareholders through bumper dividend payout, bonus issue and capital appreciation.
Although the bank is yet to disclose the amount to be paid as interim dividends, stock brokers at the NSE disclosed that they have actually received buy orders from investors who are willing to take position ahead of the dividends declaration.
A review of the bank’s history of dividend payment indicated that the bank has paid N21.17 billion dividends in the last five years. While N900 million was paid as dividend in 2003, N1.5 billion was paid in 2004, N2.99 billion in 2005, N3.91 billion in 2006 and N11.88 billion in 2007.
The bank, it would be recalled gave the investors a surprise bonus issue of one for four in the 2006 financial year as well as a dividend of 42 kobo per share. It also paid 102 kobo last year as against the projected 75 kobo dividend.
A senior official of the bank assured that the bank will pay interim dividend to all the shareholders this financial year.
“The Managing Director said the bank would make shareholders millionaires and this would be done through bumper returns on investments. So, I am very positive that the shareholders will have reasons to celebrate as they have always done.”
He said Oceanic Bank’s dividend policy has been one of the most attractive in the industry in the past five years.
Specifically, the quantum of its annual dividend payout has grown by an impressive 1477 percent since 2001, which implies that investors in the bank have the prospect of seeing their investment yielding four times the value of their initial investment annually.
Among the top six banks in the industry in 2007, Oceanic Bank has the highest return on average equity, the second highest return on average assets and the second lowest cost-to-income ratio.
Commenting on the proposed interim dividend payout, president of independent shareholders association of Nigeria (ISAN), Sunny Nwosu lauded the management of the bank for standing firm with what they have promised and assured them of the support of the shareholdersd association.
He said: “The managing director has done very well. She has proved to be very reliable and an efficient and able manager. She has promised to make us-shareholders happy and we are indeed very happy that she is doing just that.”
In the same vein, the Chairman, progressive shareholders association of Nigeria (PSAN) Boniface Okezie commended the bank’s dividend policy while describing the decision to pay interim dividend as the best thing coming from the bank.
Comparative analysis of the projections and actual results indicated that while profit before taxation (PBT) was projected to hit N18.91 billion in 2007, the bank recorded a profit before tax of N23 billion representing a difference of N5 billion.
Though profit after tax was estimated at N14.75 billion, a profit after tax of N17.5 billion was returned laying credence to the bank’s ability to not only deliver on its promises but to also exceed projections.
With over 400,000 shareholders, the bank said it would effectively enrich the pockets of its shareholders through bumper dividend payout, bonus issue and capital appreciation.
Although the bank is yet to disclose the amount to be paid as interim dividends, stock brokers at the NSE disclosed that they have actually received buy orders from investors who are willing to take position ahead of the dividends declaration.
A review of the bank’s history of dividend payment indicated that the bank has paid N21.17 billion dividends in the last five years. While N900 million was paid as dividend in 2003, N1.5 billion was paid in 2004, N2.99 billion in 2005, N3.91 billion in 2006 and N11.88 billion in 2007.
The bank, it would be recalled gave the investors a surprise bonus issue of one for four in the 2006 financial year as well as a dividend of 42 kobo per share. It also paid 102 kobo last year as against the projected 75 kobo dividend.
A senior official of the bank assured that the bank will pay interim dividend to all the shareholders this financial year.
“The Managing Director said the bank would make shareholders millionaires and this would be done through bumper returns on investments. So, I am very positive that the shareholders will have reasons to celebrate as they have always done.”
He said Oceanic Bank’s dividend policy has been one of the most attractive in the industry in the past five years.
Specifically, the quantum of its annual dividend payout has grown by an impressive 1477 percent since 2001, which implies that investors in the bank have the prospect of seeing their investment yielding four times the value of their initial investment annually.
Among the top six banks in the industry in 2007, Oceanic Bank has the highest return on average equity, the second highest return on average assets and the second lowest cost-to-income ratio.
Commenting on the proposed interim dividend payout, president of independent shareholders association of Nigeria (ISAN), Sunny Nwosu lauded the management of the bank for standing firm with what they have promised and assured them of the support of the shareholdersd association.
He said: “The managing director has done very well. She has proved to be very reliable and an efficient and able manager. She has promised to make us-shareholders happy and we are indeed very happy that she is doing just that.”
In the same vein, the Chairman, progressive shareholders association of Nigeria (PSAN) Boniface Okezie commended the bank’s dividend policy while describing the decision to pay interim dividend as the best thing coming from the bank.
Comparative analysis of the projections and actual results indicated that while profit before taxation (PBT) was projected to hit N18.91 billion in 2007, the bank recorded a profit before tax of N23 billion representing a difference of N5 billion.
Though profit after tax was estimated at N14.75 billion, a profit after tax of N17.5 billion was returned laying credence to the bank’s ability to not only deliver on its promises but to also exceed projections.
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