GTCO, Fidelity Bank, Stanbic IBTC Shareholders to  Get N42.15bn Interim Dividend

Kayode Tokede

Following a good performance in H1, Guaranty Trust Holding Company Plc (GTCO), Fidelity Bank Plc and Stanbic IBTC Holdings have announced plans to reward their shareholders with N42.15 billion interim dividend for half year ended June 30, 2023. 

The three banks in H1 2022 paid shareholders N31.16 billion as interim dividend.

Shareholders await Access Holdings Plc, Zenith Bank Plc, and United Bank for Africa Plc (UBA) half-year ended June 30, 2023 results and declared interim dividend.

GTCO in its H1 2023 declared N0.50 per share interim dividend, amounting to N14.72billion, while Stanbic IBTC Holdings announced to shareholders an interim dividend of N1.50 per share, representing a net worth of N19.44billion.

For Fidelity Bank, the management proposed N0.25 per share interim dividend, translating into N8 billion returns expected to share among shareholders that invested in the bank

The improved dividend in H1 2023 can be attributable to an impressive increase in profit amid a decline in dividend yield.

Specifically, the three banks reported N410.4 billion profit after tax in H1 2023, an increase of 212per cent from N131.53 billion reported in H1 2022.

GTCO announced historical N280.48billion profit in H1 2023, an increase of 261.6 per cent from N77.56billion reported in H1 2022, while Stanbic IBTC Holdings declared N67.92billion profit in H1 2023, an increase of 121.5 per cent from N30.67billion in H1 2022.

In addition, Fidelity disclosed N61.99billion profit in H1 2023, an increase of 165.99 per cent from N23.31billion in H1 2022.

The Chief Executive Stanbic IBTC, Dr Demola Sogunle in a statement said, “The first half of 2023 was an eventful one for us as an organisation within the Nigerian operating environment. Events such as the general elections and cash scarcity led to relatively slower business activities at the beginning of the year, causing the Stanbic IBTC Bank Purchasing Manager Index (PMI) to print below 50 index points.”

According to him, the Group reported significant growth in key income lines during the period under review.

“The Group’s profitability increased by over 100per cent year-on-year (YoY) driven by growth across our revenue streams. Interest income grew by 62per cent YoY, mainly due to higher yield and volume of loans and investments, which is in line with our efforts to support our clients through loan offerings and investment opportunities,” he said.

Sogunle added that, “We have made very good progress in the first half of the year and we will continue to work towards the delivery of our guidance for 2023.”

Over the years, these banks dividend payout has contributed to stock price appreciation and it is undoubtedly reflected in the last eight months of 2023.

The stock price of GTCO has appreciated to N36.7 per share as of August 31, 2023, an increase of 60 per cent from N23 per share it closed in 2022.

Stanbic IBTC Holdings stock price on the Nigerian Exchange Limited (NGX) gained 94 per cent to N65 per share as of August 31, 2023 from N33.45 per share it opened this year as Fidelity Bank show its stock price at N7.05 per share as of August 31, 2023, an increase of 62.07 per cent from N4.35 per share recorded when the market closed 2022.