Three (3) commercial banks operating in Nigeria- Zenith, Access and Stanbic IBTC, have declared a massive N33.08 billion as interim dividends for the period ended June 30, 2021.
The breakdown of the banks’ financial reports for the half-year period revealed that in spite of the challenging business environment and the slowdown in economic activities due to the COVID-19 pandemic, the banks were still able to make profit and declare interim dividends.
The first six months of the year (HY 2021) was challenging to most Nigerian banks, as they strive to cope with regulatory pressures and impact of the pandemic on the income and purchasing power of the Nigerian households. The banks played a key role in stimulating economic growth and resuscitating the moribund economic activities. For example, while striving to maximize profits, banks were mandated to align their objectives with CBN’s expansionary motive.
To get a clearer perspective, recall that banks were urged by the CBN to grant moratorium and restructure most of its loan portfolio during the period under review due to present realities. In addition, the CBN slashed interest rates on intervention facilities from about 9% to 5% per annum, among other initiatives mapped out to strengthen the economy. It is important that some of these policies had overbearing impact on some banks.
Consequently, out of the major banks that have released their half year results for the period under review, only Zenith, Stanbic and Access Bank declared interim dividends for the period under review. It is important to note that the likes of GTB, Fidelity and UBA are yet to release their half year results.
Breakdown of what the banks declared.
Of the three banks that have declared interim dividends so far, Stanbic IBTC led the pack with interim dividend of N12.96 billion, despite recording more than 50% decline in its bottom line during the period under review. Access Bank followed closely with a proposed interim dividend of N10.7 billion and Zenith Bank with 9.42 billion. Collectively the banks declared interim dividends worth N33.08 billion.
It is important to note that the aforementioned banks declared a total of N215.6 billion as profit after tax for the period under review.
When are they going to pay these dividends?
Naijabusiness.com gathered that the dates for the disbursement varied depending on the banks concerned. Zenith Bank will disburse to its qualified shareholders accrued dividends on the 20th of September, 2021, while both Stanbic IBTC and Access Bank will credit its shareholders on the 29th of September, 2021.
Irrespective of the variability in date of disbursement, naijabusiness.com.ng gathered that the conditions for qualification are uniformly the same. To qualify, shareholders are urged to;
- To ensure their names are codified in the bank’s register of shareholders on or before the respective qualification dates made available on the respective websites of the banks.
- Shareholders are urged to fill the e-dividend registration form and mandate their respective registrars to pay their dividends directly into their bank accounts.