Report reveals banks, firm paid N51bn dividend in H1

The shareholders of three financial institutions, namely Flour Mills of Nigeria Plc, Guaranty Trust Holding Company Plc, Fidelity Bank, and Stanbic IBTC Holdings, received a combined N51.38 billion in dividends in the first half of 2023.

Compared to the dividends paid to the companies’ stockholders as of June 2022, this represented an increase of 28.52 percent.

The cash crunch that occurred in the first quarter of 2023, the heightened tension caused by the general elections in 2023, the removal of fuel subsidies, and even the harmonisation of the various segments of the country’s foreign exchange market were reported as economic challenges faced by many companies listed on the Nigerian Exchange Limited during the period under review.

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For the financial institution, Stanbic IBTC Holdings, proposed dividend to shareholders for the half year remained unchanged at N19.44bn (H1 2022: N19.44bn) at N1.50 per ordinary share.

Stanbic has issued and fully paid-up capital of 12,956,997,163 Ordinary shares of 50k each. The proposed dividend is subject to shareholders’ approval at the group’s Annual General Meeting.

Commenting on the H1 results of Stanbic IBTC Holdings, analysts at Futureview Financial Services Limited said, “Stanbic IBTC Holdings PLC demonstrated strong financial performance in H1 2023 compared to H1 2022, with notable increases in key financial indicators such as profit, EPS, and market price.

“Despite a decline in certain margins, the company’s effective cost management, improved asset quality, and increased profitability contributed to its positive performance. The significant growth in total assets and liabilities suggests expansion and potential growth opportunities. Overall, the company appears to be on a positive trajectory in terms of both financial performance and market sentiment.”