Stanbic IBTC proposes higher dividend despite earnings dip

…share price down 11% year-to-date

Stanbic IBTC Holdings plc, one of Nigeria’s largest banks, will go ahead to pay higher dividends to shareholders despite a dip in earnings.

Stanbic has proposed an interim dividend of N1 per ordinary share of 50 kobo each, amounting to N12.956 billion subject to deduction of appropriate withholding tax and regulatory approval, to be paid to shareholders whose names appear in the Register of Members as at the close of business on September 30, 2021.

This comes on the heels of a dip across its top-to-bottom-line figures in its recently released financials for the half year (H1) ended June 30. The proposed interim dividend is a remarkable leap from 40kobo per share or N4.20 billion it paid in H1’20.

The group’s gross earnings in H1’21 decreased by 26.06 percent to N93.59 billion from a high of N126.57 billion in H1’20, the results released at the Nigerian Exchange Limited (NGX) show.

Stanbic IBTC Holdings profit before tax (PBT) decreased by 52.85 percent to N24.707 billion from N52.406 billion in H1’20; while profit after tax (PAT) decreased by 50.13 percent to N22.54 billion from N45.20 billion in H1’20.

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The directors’ recommended the approval of an interim dividend of 100 kobo per share (June 30, 2020: 40 kobo per share) for the period ended June 30, 2021.

On September 29, 2021, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at close of Trading on September 20, 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

The directors’ report for the period ended June 30, 2021 shows the company’s dividend history and unclaimed dividend. Its total unclaimed dividend fund as of June 30, 2021, amounted to N2.91 billion (December 2020: N3.18bn).

The directors said N1.195 billion of the fund balance is held in an investment account (money market mutual fund) managed by Stanbic IBTC Asset Management Limited (December 2020: N1.394bn), while the balance is held in demand deposits maintained with Stanbic IBTC Bank plc. Total income earned on the investment account and recognised by the company for the year ended June 30, 2021 was N23 million (June 2020: N98m).

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

Stanbic IBTC Holdings 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 Financial Services Limited (formerly Stanbic IBTC Bureau De Change Limited), and Stanbic IBTC Nominees Limited. Stanbic IBTC Financial Services Limited is yet to commence operations.

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