Nigeria’s largest banks otherwise known as tier 1 lenders will pay a total dividend (both interim and final dividend) of N212.15 billion for the 2018 financial year.
The banks are: Guaranty Trust Bank (GTBank), Zenith Bank, Access Bank, and United Bank for Africa (UBA).
A breakdown of the figure shows GTBank will pay final dividend (both interim and final) of N80.93 billion or 2.75 per share for 2018 financial year, representing a 1.78 percent reduction from the N82.40 billion or N2.80 per share paid out in 2017.
Zenith Bank’s total distribution from profit (both interim and final) was up 3.57 percent to N87.92 billion or N2.80 per share in 2018 from N84.78 billion or 2.70 per share paid out in 2017.
Access Bank’s total distribution from profit (both interim and final) was down 2.30 percent to N14.46 billion or N0.60 per share in 2018 from N18.80 billon or N0.65 per share paid out in 2017.
UBA’s payout as dividend remained flat at N29.05 billion or N0.85 per share in the period under review.
Experts say some lenders embarked on dividend cuts due to the stringent rules on distribution by the central bank at the height of rising Non Performing Loans (NPLs) that threatened earnings.
“They need to conserve capital so that they can sustain their capital adequacy ratio. Also the limits on payment by the central bank of Nigeria are also responsible for a conservative policy,” said Wale Olusi, equity research analysts with United Capital Ltd.
Zenith Bank had a dividend yield of 12.73 percent, UBA 11.41 percent, Access Bank 8.62 percent and GTB 7.82 percent as at Friday March 03, 2019.
BALA AUGIE
