UBA Leads Four Others In N171.14bn H1 2024 Interim Dividend

Despite domestic and foreign macroeconomy challenges, United Bank for Africa Plc (UBA) led four other Nigerian banks to declare a total N171.14 billion interim dividend for the half year ended June 2024.

The figure is about a 121 per cent increase from the N77.6billion interim dividend declared by these banks including Zenith Bank Plc, Access Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), and Stanbic IBTC Holdings Plc in the half year ended June 30, 2023.

In H1 2024, the five banks declared a profit after tax of N2.2 trillion, about 90.5 percent increase from N1.15 trillion reported in H1 2023.

INSIDEBUSINESSNG gathered that GTCO is in the lead of other banks as the most profitable bank, having garnered a profit of N905.6 billion in H1 2024, about 223 per cent increase from N280.48 billion reported in H1 2023.

“Despite the uncertainties in the operating environment, our performance in the first half of the year, where we recorded our highest profit to date, is a testament to the resilience and adaptability of our business model”, stated the Group Chief Executive Officer, GTCO, Segun Agbaje, who said the bank is immensely proud of the progress made as a leading financial holding company.

“We remain optimistic about the future and are committed to leveraging our unique strengths as a thriving financial services ecosystem to create sustainable value for all our stakeholders as we continue to position all our business verticals–Banking, Funds Management, Pension, and Payments–for rapid growth across key markets.”

In the period under review, UBA declared N2.00 per share as interim dividend as against N0.50 per ordinary share interim dividend declared in H1 2023.

Generating about N316.36 billion in profit in H1 2024, the Pan-African financial institution’s total value as interim dividend payout to shareholders stood at N68.4 billion in H1 2024, representing an increase of 300 percent from N17.1 billion in H1 2023.

The Group Managing Director of UBA, Oliver Alawuba underscored the bank’s commitment to consistently delivering value to its shareholders, stating “UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals.”

Continuing, the GMD said “The Group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines. Our intermediation business showed strong growth with net interest income expanding by 143 percent YoY to N675 billion”.

Zenith Bank rewarded its shareholders an interim dividend of N1.00 per share in H1 2024 from N0.50 per share, bringing its payout by value to N31.4 billion, as shareholders of GTCO got the same N1.00 per share in H1 2024, with a market value of N29.43 billion.

In the period under review, Zenith Bank declared N578 billion profit, an increase of 98 per cent from the N291.73 billion in H1 2023 while the management of Access Holdings declared interim dividend of N0.45 per ordinary share in H1 2024 from N0.30 per share H1 2023, to bring the total value expected to the shareholders at N15.99 in billion H1 2024, about 50 per cent increase from N10.66 billion paid to shareholders H1 2023.

In addition, the management of Stanbic IBTC Holding rewarded the shareholders with N2.00 per share in H1 2024 from N1.50 per share in H1 2023, bringing the total payout to N25.91 billion, a growth of 33 per cent when compared to N19.44 billion in the corresponding period of 2023.

Stanbic IBTC Holdings announced N116.36 billion profit in H1 2024, a 71 per cent growth from N67.92 billion reported in H1 2023, a result which its Chief Executive, Demola Sogunle commended despite “The challenging operating environment in the first half of the year, evidenced by intensified inflationary pressure and subdued demand, which caused the Bank’s Purchasing Manager Index (PMI) to drop to a seven-month low of 50.1 points in June 2024.

He noted the economy showed resilience in this period that saw the government implementing several policies to stabilise the economy and attract foreign investment.

The performance of the banks in this period drew satisfaction from the National Coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie who noted that Nigerian banks remained resilient amid the economic challenges H1 2024.

Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso also expressed the strength of Nigerian banks which he said are healthier, and more resilient with the capabilities to withstand severe economic shocks and supporting the federal government’s goal of achieving a $1 trillion gross domestic product (GDP) by 2030.