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Nigeria's leading finance and market intelligence news report.

Investors rush to Stanbic IBTC ahead N39.98bn dividend payout

… to receive bonus of 1 new share for every 6 held

Stanbic IBTC Holdings plc has proposed a final dividend of 360 kobo per ordinary share that amounts to N39.981 billion for the year ended December 31, 2020, compared to final dividend payout of N21.010 billion in 2019.

Stanbic IBTC Holdings is a member of the Standard Bank Group, which holds a 67.02 percent equity holding (through Stanbic Africa Holdings Limited) in the company.

Its audited financial statements for the year ended December 31, 2020, released at the Nigerian Exchange (NGX) Limited show the group’s gross earnings increased by 0.27 percent to N234.446 billion from N233.808 billion reported in 2019.

Profit before tax (PBT) increased by 4.17 percent to N94.717 billion from a low of N90.925 billion in 2019, while profit after tax (PAT) increased by 10.90 percent to N83.211 billion from 2019 low of N75.035 billion.

In the review year 2020, Stanbic IBTC had paid interim dividend worth N4.442 billion against N10.474 billion interim dividend it paid in 2019.

At N44.05, the share price closed on Tuesday, March 23, Stanbic IBTC Holdings has returned to its year-open level, thereby outperforming the Nigerian Bourse benchmark performance index with negative year-to-date (YtD) return at -3.89 percent as at that date.

The stock price rallied by N4.2 or 9.53 percent to N48.25 per share on Wednesday, March 24, as investors moved to make list of those that will qualify for the final dividend payment. On the Nigerian Exchange (NGX) Limited, Stanbic IBTC share price had reached a 52-week high of N48.45 and a corresponding week low of N23.50.

The final dividend, which is subject to deduction of appropriate withholding tax and regulatory approval, will be paid to shareholders of Stanbic IBTC Holdings whose names appear in the Register of Members as at the close of business on Wednesday, April 7, 2021.

The register of shareholders will be closed from Thursday, April 8, 2021, to Thursday, April 15, 2021, while the qualification date is Wednesday, April 7, 2021.

On Friday, May 28, 2021, the final dividend will be paid electronically to shareholders whose names appear on the Register of Members as at close of trading on Wednesday, April 7, 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

Also, the financial institution has proposed bonus of one (1) new ordinary share for every six (6) existing ordinary shares held by shareholders in the capital of the company as at close of business on Thursday, June 10, 2021, (subject to shareholders’ and regulatory approvals), according to a notice signed by Chidi Okezie, company secretary.

The principal activity of the company is to carry on business as a financial holding company, to invest and hold controlling shares, in as well as manage equity in its subsidiary companies.

The company has nine direct subsidiaries, namely: Stanbic IBTC Bank, Stanbic IBTC Pension Managers Limited, Stanbic IBTC Asset Management Limited, Stanbic IBTC Capital Limited, Stanbic IBTC Insurance Limited, Stanbic IBTC Stockbrokers Limited, Stanbic IBTC Ventures Limited, Stanbic IBTC Insurance Brokers Limited, and Stanbic IBTC Trustees Limited, and two indirect subsidiaries, namely: Stanbic IBTC Bureau De Change Limited and Stanbic IBTC Nominees Limited.

The group discontinued the operation of Stanbic IBTC Bureau De Change Limited effective January 1, 2021. The discontinuation of the BDC business was primary driven by changes in regulation, which now afford customers the opportunity of purchasing foreign exchange (PTA and BTA) directly from Stanbic IBTC Bank at any of its branches nationwide.

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