Investors have stepped up demand for shares of the largest banks amidst expectations that the lenders will declare interim dividends on their half-year results.
Four leading banks-Guaranty Trust Bank (GTB), Zenith Bank, United Bank for Africa (UBA) and Access Bank, have established a regular pattern of twice-a-year dividend payment, with interim dividend usually declared on first half reports. Stanbic IBTC Holdings had also declared interim dividend in recent period.
Under the three-step final process for the release of dividend recommendations and audited reports, the board of directors meets to consider and approve the audited financial statements as well as dividend recommendation, then authorises the transmission of the signed reports to the primary regulator, in the case of financial institutions and other regulated entities and with the receipt of the approval of the primary regulator, transmits the dividend recommendation and audited report to the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) for announcement to the investing public.
Already, the four leading banks have confirmed that they might declare interim dividend for the first half of 2019. In separate regulatory filings, the banks had indicated that their directors had met and deliberated on dividend payment. The boards of Zenith Bank, Access Bank and GTB had met last month to deliberate on the half-year 2019 results. Also included on the agenda was a consideration for interim dividend payment.
UBA on Tuesday indicated that its board of directors will be meeting on August 22, 2019 to consider the audited financial statements for the half year ended June 30, 2019.
The four-Access Bank, Guaranty Trust Bank, Zenith Bank and UBA were among the five most active stocks yesterday at the Nigerian Stock Exchange (NSE). Market analysts said investors were positioning for the first half results and interim dividends of the major banks.
UBA had paid N6.84 billion to shareholders as interim dividend for the first half of last year, representing interim dividend per share of 20 kobo.
Access Bank had also paid N7.23 billion to its shareholders as interim dividend for the first half of 2018, indicating interim dividend per share of 25 kobo, the same rate paid for first half of 2017.
Zenith Bank Plc had distributed N9.42 billion to shareholders as interim dividend for the half-year ended June 30, 2018, representing interim dividend per share of 30 kobo, 20 per cent above 25 kobo paid as interim dividend for the first half of 2017. The bank had distributed N7.5 billion as interim dividend for the first half of 2017. GTB had also paid interim dividend per share of 30 kobo for the first half of last year.
Post-listing rules at the NSE require quoted companies to submit interim or unaudited quarterly report not later than 30 calendar days after the end of the relevant period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year. The deadline for the six-month period ended June 30, 2019 is thus July 30, 2019.
However, where a company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.
All the four leading banks also undertake audit of their half-year accounts. The deadline for the submission of their accounts is thus August 29, 2019.
