Zenith leads the pack as GTB, UBA, others declare dividends

By Odunewu Segun

It is without doubt that the 2016 financial year was a rather challenging macroeconomic environment for many businesses to operate under. But shareholders of some Deposit Money Banks (DMOs) have cause to jubilate despite the macroeconomic challenges.

According to National Daily findings, seven banks have so far made public their reports for the financial year ended December 31, 2016. All declared dividends for their shareholders, except for Wema Bank and Union Bank.

Zenith International Bank Plc led the pack. It declared a profit after tax of N129.65 as against the N105.66 billion recorded in 2015 and a final dividend of N1.77 per share, an improvement over the N1.55 per share paid in 2015.

The bank had earlier in 2016 paid a sum of 25k as interim dividend, bringing the total dividend in 2016 to N2.02 per share against N1.80 per share declared in 2015.

The bank’s gross earnings grew by 17.4 per cent to N507. 99 billion compared with N432.54 billion recorded in 2015. Its non-interest income increased by 45.9 per cent to N25.59 billion due to an 809 per cent increase in foreign exchange revaluation gains of N25.6 billion. This however, declined by 10 per cent from the N8.2 billion reported in nine months of 2016.

Guaranty Trust Bank came second with a N1.75 final dividends to its shareholders from a N132 billion profit after tax. This brings the total dividend to N2.00 per share because it earlier paid an interim dividend of 25 kobo.

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Guaranty Trust Bank (GTBank) Plc reported gross earnings of N414.62 billion for the year ended December 31, 2016, showing an increase of 37 per cent from N301.85 billion in 2015.

In all, total assets and contingents stood at N3.70 trillion and shareholders’ funds of N504.9 billion.

United Bank for Africa came third, declaring a 75 kobo final dividend. The bank approved payment of final dividend of N19.9 billion for the financial year ended Dec. 31, 2016.

The dividend translates to a final dividend of 55k per share, against 40k per share paid in 2015. This is in addition to the 20k interim dividend earlier paid by the bank, bringing the total dividend to 75k, against 60k declared in 2015.

Profit before tax stood at N90.64 billion in contrast with N68.45 billion in 2015, representing a growth of 32.4 per cent. Its profit for the year increased by 21.1 per cent to N72.26 billion from, N59.65 billion in the comparative period of 2015.

Access Bank trailed the big three, declaring a profit after tax of N71.4 billion with shareholders receiving a final dividend of 40 kobo per share, bringing the total dividend for the year to 65 kobo per share.

Access Bank Plc recorded revenue of N381.3 billion, showing an increase of 13 per cent above the N337.4 billion in 2015. Net interest income rose by 32 per cent from N105.4 billion to N139.1 billion, while non-interest income grew marginally by 3.5 per cent to N134 billion, from N129 billion the previous year.

Fidelity Bank however suffered a profit dip, recording N11.1 billion from the N14 billion posted in 2015 but the bank still recommended a 14 kobo dividend for its shareholders.

Both Union Bank and Wema also recorded profit but didn’t propose dividends to their shareholders. Union Bank Post-tax profit for the period increased seven percent (7%) to N15.3 billion from N14.3 billion recorded the same period of 2016.

As for Wema Bank, its gross earnings in 2016 grew by 17.56 percent from N45.79 billion in 2015 to N53.83 billion. Similarly, its profit before tax (PBT) recorded a rise by 9.36 percent to N3.27 billion from N2.99 billion declared in 2015. Also, the financial institution’s profit after tax (PAT) saw an improvement by 13.66 percent to N2.59 billion against N2.27 billion in 2015.