UBA Delights Investors With Record N2 Per Share Interim Dividend
United Bank for Africa (UBA) made waves in the stock market on Monday by announcing a record-breaking interim dividend of N2 per share, the highest payout among Nigerian banks in the first half of 2024. This announcement instantly boosted investor confidence, resulting in a 9.99% surge in UBA’s share price, closing at N28.30 per share and placing the stock at the top of the gainers’ chart on the Nigerian Exchange (NGX).
The remarkable dividend payout, driven by strong half-year financial results, saw UBA distributing a total of N68.4 billion to shareholders, translating to a 21.6% dividend payout ratio—one of the highest in the industry. In comparison, other leading banks such as Guaranty Trust (GT), Access Bank, and Zenith Bank reported significantly lower ratios of 3.3%, 5.7%, and 5.4%, respectively.
Investors are encouraged by UBA’s commitment to rewarding its shareholders, which underscores the bank’s robust financial health. Unlike its 2023 profits, largely fueled by foreign exchange gains, UBA’s half-year 2024 profits were primarily driven by interest income, commissions, and fees. The bank’s decision to declare such a substantial interim dividend, despite ongoing economic challenges and the backdrop of Nigeria’s bank recapitalization efforts, highlights UBA’s strong earnings and cash support.
This move is expected to sustain investor confidence and further drive UBA’s stock momentum in the near term. Analysts believe that UBA’s dividend payout, totaling N68.4 billion, reflects the bank’s sound profitability and liquidity, independent of retained earnings.
Source: Nairametrics
