About two months ago (June 13), the Central Bank of Nigeria (CBN) directed banks to temporarily suspend the payment of dividends to shareholders, defer the payment of bonuses to directors and senior management staff, and refrain from making investments in foreign subsidiaries or embarking on new offshore ventures.
The measure, according to the apex bank forms part of ongoing efforts to strengthen the resilience and stability of the Nigerian banking sector. The CBN noted that it had recently reviewed the capital positions and adequacy of provisioning of banks currently operating under approved regulatory forbearance frameworks, particularly concerning credit exposures and Single Obligor Limits (SOL).
The CBN issued this directive to all banks that are currently beneficiaries of credit or SOL forbearance regimes given the imperative to bolster capital buffers, reinforce balance sheet resilience, and encourage prudent internal capital retention during this transitional period.
Before this development, investors showed remarkable interest in banks shares. The NGX Banking Index which comprises the most capitalised and liquid companies in banking has moderated the earlier recapitalisation-driven year-to-date (YtD) rally which stood at +45.58 percent as at August 18, making way for funds flow into insurance, industrial and consumer goods stocks.
Though many stock investors who invest for dividend took cautious position in banks, the expectation of their half-year results and possible approval of interim dividend by the CBN will trigger another round of positive feeling in favour of the interim dividend paying banks.
While some investors maintain their dividend investing strategy which is centred on purchasing stocks that pay regular dividends, below are the tier-1 banks investors are awaiting CBN to approve their interim dividends.
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GTCO (+70.18% return YtD)
Though the half-year (H1) audited financial statements of Guaranty Trust Holding Company (GTCO) for the period ended June 30, 2025 was approved by the board of directors on July 31, however the approval of the primary regulator is required before the result is released to the market. GTCO had on August 5 noted that its Board of Directors approved interim dividend which is subject to the approval of the Central Bank of Nigeria (CBN).
Last 7 Days Trades
The N97 per share which GTCO closed as at August 18 shows it decreased from preceding day’s level. As investors positioned in the stock for interim dividend, it had reached a 52-week high of N103.2 per share as against 52-week low of N45.3.
UBA (+41.03% return YtD)
Recently at its meeting which held on Thursday, August 14, the Board of United Bank for Africa Plc considered and approved the 2025 half-year audited accounts and financial statements of the bank for the period ended June 30. The Board also approved an interim dividend for the period, subject to the approval of the Central Bank of Nigeria (CBN).
Last 7 Days Trades
The share price of United Bank for Africa Plc stood at N47.95 as at August 18. At that price, though a decline as against previous trading day, the bank’s share price still nears its 52-week high of N50.55. The stock had exchanged at a 52-week low of N21.9.
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Access Holdings (+15.30% return YtD)
On July 31, Access Holdings notified the investing public that its Board of Directors approved the group’s half year audited results and the payment of an interim dividend, subject to the approval of the Central Bank of Nigeria (CBN). The holding company is expected to announce its H1 results once approval is received from the CBN.
Recently, Access Holdings said notified the investing public of a potential delay in the release of the group’s interim audited financial statements for the half year ended June 30, 2025.
“This is engendered by the complexity of the post-completion audit activities of the newly acquired sub-subsidiaries within the banking group,” Access Bank said. In view of the foregoing, the NGX has approved an extension of time to file the results on or before September 29, 2025, subject to the Central Bank of Nigeria’s approval of the results.
Last 7 Days Trades
The share price of Access Holdings Plc closed lower at N27.5 as at August 18, when compared to the preceding day. The stock had reached a 52-week high of N28.95 and a 52-week low of N18.
Zenith Bank (+58.90% return YtD)
The Board of Directors of Zenith Bank met on July 24 and approved the H1’2025 audited accounts and financial statements for the group and the possible payment of an interim dividend, subject to the approval of the Central Bank of Nigeria (CBN). The bank will notify the investing public upon receipt of the approval of the Central Bank of Nigeria (CBN) of the H1 audited accounts and financial statements.
Last 7 Days Trades
At N72.3 per share which Zenith Bank exchanged on August 18, it heads to its 52-week high of N78.5 compared to a 52-week low of N35.1.
