Nigerian banks pay N135.49bn interim dividends

UBA, Zenith, GTCO, and Stanbic IBTC pay N135.49bn in interim dividends, boosting investor confidence amid regulatory and economic pressures

Four of Nigeria’s largest lenders United Bank for Africa (UBA), Zenith Bank, Guaranty Trust Holding Company (GTCO), and Stanbic IBTC Holdings have declared interim dividends totalling N135.49bn for the half-year ended June 30, 2025.

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The payments, disclosed in their filings with the Nigerian Exchange Limited, brought relief to investors who had feared banks might suspend payouts due to regulatory tightening and economic uncertainty.

Stanbic IBTC emerged as the top payer, declaring N2.50 per share a total of N39.75bn for shareholders on its register as of October 6, 2025. Analysts said the move highlighted the group’s strong earnings and resilience.

Zenith Bank, Nigeria’s biggest lender by market value, followed with an interim dividend of N1.25 per share across its 41.07 billion issued shares, amounting to N51.34bn.

The bank noted that the payout reflected its robust balance sheet and steady performance.

GTCO approved N1 per share, translating to N34.14bn, reassuring investors of its ability to maintain dividends despite tighter regulation.

UBA, meanwhile, declared N0.25 per share, giving shareholders a dividend yield of 1.4% and a payout ratio of 7.83%.

While more modest, the bank’s payout underscored its strategy of balancing profitability with regional expansion.

Collectively, the four lenders’ interim dividends boosted investor sentiment in the financial sector.

However, not all banks have been able to follow suit. Access Holdings and Fidelity Bank delayed the release of their half-year results, citing ongoing reviews and pending Central Bank of Nigeria (CBN) clearance.

Meanwhile, other lenders including First HoldCo, Sterling Financial Holding Company, Wema Bank, and FCMB Group published results without declaring interim dividends, pointing to regulatory directives and capital management priorities.

The mixed picture comes after the CBN ordered banks under regulatory forbearance to suspend dividends, defer executive bonuses, and pause offshore investments. The directive targeted lenders with large exposures and breaches of single obligor limits.

Encouragingly, the apex bank has since announced the successful termination of forbearance measures, saying the move would bolster transparency and long-term stability.

Analysts argue that the N135.49bn payouts demonstrate the resilience of Nigeria’s tier-one lenders, adding that more banks could resume dividends in coming quarters as regulatory uncertainties ease.

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The dividend season, they say, signals that Nigeria’s banking giants remain committed to delivering shareholder value despite challenging macroeconomic conditions.

Quadri Olaitan