Six out of the 13 listed banks on the Nigerian Exchange Limited (NGX) declared a combined N389.8 billion in dividends to shareholders between the 2022 and 2021 fiscal year, despite the difficulties facing the national and international economies.
The dividend payment is based on an after-tax profit of N1.32 trillion (N691.97 billion in 2022 and N631.41 billion in 2021). Financial institutions in Nigeria are resilient to overcoming domestic and international issues, according to capital market analysts, who praised Zenith Bank Plc’s 2022 corporate earnings and dividend payout among others.
Many investors would want to put their money into businesses that have a track record of increasing their dividends, such as Zenith Bank, UBA, and Stanbic IBTC Holdings over the years.
These companies have declared impressive dividend payout to investors but the NGX Bank index did not respond to dividend payout in the financial sector.