Four Banks Pay N135bn Dividends Amid Hurdles

Four of Nigeria’s leading financial institutions—United Bank for Africa, Zenith Bank, Guaranty Trust Holding Company, and Stanbic IBTC Holdings—have rewarded shareholders with interim dividends amounting to about N135.49 billion for the half-year ended June 30, 2025.

The dividend payments, detailed in their financial reports filed with the Nigerian Exchange Limited, offered relief to investors who had been concerned that lenders might hold back on payouts amid regulatory pressures and macroeconomic uncertainties.

Stanbic IBTC Holdings emerged as the highest interim dividend payer, declaring N2.50 per ordinary share of 50 kobo each. This translates to a total interim dividend of N39.75 billion, subject to withholding tax and regulatory approvals.

Zenith Bank, Nigeria’s largest lender by market capitalisation, followed closely with an interim dividend of N1.25 per share across its 41,069,830,001 issued shares, amounting to about N51.34 billion.

Guaranty Trust Holding Company announced a payout of N1 per share, translating to N34.14 billion, while United Bank for Africa proposed an interim dividend of N0.25 per share, reflecting a dividend yield of 1.4 per cent and a payout ratio of 7.83 per cent.

Collectively, these four institutions provided investors with much-needed returns, boosting confidence in the financial sector.

However, some lenders have struggled to meet regulatory deadlines for publishing their half-year reports. Access Holdings recently secured approval from the NGX to extend the publication of its results from September 29 to October 22, citing clearance delays from the Central Bank of Nigeria. Fidelity Bank also attributed its reporting delay to ongoing reviews of its audited financial statements.

Meanwhile, other financial institutions including First HoldCo, Sterling Financial Holding Company, Wema Bank, and FCMB Group have already released their half-year results, though none declared interim dividends, citing regulatory directives and capital management considerations.

The Central Bank of Nigeria recently directed banks operating under regulatory forbearance to suspend dividend payments, defer executive bonuses, and halt offshore investments. The apex bank explained that the move was necessary to strengthen the resilience and stability of the sector.

The CBN’s Monetary Policy Committee has since disclosed that the forbearance measures and waivers on single obligors have been successfully wound down, a development that is expected to restore transparency, risk management, and long-term financial stability in the banking system.

Analysts believe the N135.49 billion interim dividend payouts by UBA, Zenith Bank, GTCO, and Stanbic IBTC will help restore investor confidence, particularly at a time when shareholders had anticipated reduced or suspended payouts.

With regulatory uncertainties easing and forbearance measures lifted, more banks are expected to resume dividend distributions in the coming quarters, further strengthening investor confidence in Nigeria’s banking sector.