GTBank, UBA three other bank’s shareholder pocketed N37.2bn in H1 2017
By Kayode Ogunwale

 

In spite of tough economy condition, five commercial banks listed on the floor of the Nigerian Stock Exchange (NSE) rewarded their shareholders with interim dividend of N37.166 billion in half year 2017.
According to Investopedia, “interim dividend is a dividend payment made before a company’s annual general meeting and final financial statements. The interim dividend is generally the smaller of the two payments made to shareholders”. With this, there is strong indication that these five banks will pay final dividend by the end of 2017 financial year.
However, the check carried out by Business Standard shows that Guaranty Trust Bank Plc paid its shareholders total amount of N8.829 billion (30 kobo per each share) as interim dividend. Zenith International Bank Plc paid the value of N7.849 billion (25 kobo per share), while United Bank for Africa Plc’s interim dividend paid for the half year 2017 amounted to N7.256 billion, represented 20 kobo per ordinary share of the bank.
Also, Access Bank Plc and Stanbic IBTC Holdings Plc declared N7.232 billion and N6 billion to their shareholders respectively.
The interim dividend declared by the five banks shows 25.16 percent improvement upon N29.695 billion paid during the half year 2016.
Although, the increment in the interim dividend paid in half year 2017 triggered by Stanbic IBTC that did not paid any interim for half year 2016 and Guaranty Trust Bank which increased the total amount of what it paid in 2016 by 20 percent. Access Bank, UBA and Zenith Bank maintained the same amount paid out in half year 2016.
The N37.17 billion paid as interim dividend in half year 2017 is just 14.03 percent of what the five banks retained as profit after tax during the period, as they recorded profit after tax of N264.90 billion.
The half year results of these five banks shows that, Guaranty Trust Bank Plc which declared the higher interim dividend also retained highest profit of N83.7 billion. Zenith Bank Plc reported N75.3 billion profit after tax during the half year period, while UBA Plc’s profit after tax stood at N42.3 billion during the half year period.
Also, Access Bank Plc and Stanbic IBTC Plc’s profit after tax stood at N39.5 and N24.1 billion in the sequence.
The total income of the five banks at the end of half year 2017 was N1.161 trillion.