Wema Bank to Pay N3.9 Billion in Dividend for the 2022 FYE (investorsking.com)

Wema Bank to Pay N3.9 Billion in Dividend for the 2022 FYE

Therefore, many investors prefer companies with a history of growing dividend payout, such as Zenith Bank, UBA, and Stanbic IBTC Holdings.

Although the NGX Bank index did not respond to dividend payout in the financial sector in Q1 2023, it is expected that these banking stocks will bounce back in the second quarter of 2023 once unaudited firstquarter results and accounts are released to the investing public.

Nigerian banks have displayed resilience in overcoming economic challenges and remain a reliable source of investment for shareholders.

Despite the global economic upheaval and domestic challenges faced by the Nigerian banking sector, six out of 13 listed banks on the Nigerian Exchange Limited (NGX) declared a total of N389.8 billion in dividends to shareholders between the 2021 and 2022 financial years.

This impressive feat was on the back of N1.32 trillion profit after tax, N691.97 billion in 2022, and N631.41 billion in 2021.

The year 2021 and 2022 were marked by significant headwinds across all emerging markets, including RussiaUkraine conflict, inflationary pressures, lockdowns related to COVID19 outbreaks, and supply chain bottlenecks.

Despite these challenges, Zenith Bank Plc, United Bank for Africa Plc (UBA), Stanbic IBTC Holdings Plc, Ecobank Transnational Incorporated (ETI), FCMB Group Plc, and Jaiz Bank Plc stood out by declaring N198.2 billion and N191.6 billion dividends in 2021 and 2022, respectively.

Zenith Bank, with a total profit of N468.47 billion between 2021 and 2022, proposed a dividend of N197 billion, while UBA declared N227.84 billion profit in the same period and proposed a dividend of N71.82 billion.

Despite a decrease in Zenith Banks group profit after tax from N244.6 billion to N223.9 billion due to the effective implementation of the Finance Act, the bank remains at the forefront of dividend payout to shareholders.

This increase is because of the effective implementation of the Finance Act.

This affected return on equity which reduced from 20.4 per cent to 16.8 per cent, the bank explained in its financial statement seen by Investors King.


Although Access Corporation, Guaranty Trust Holding Plc, Sterling Financial Holdings Company Plc, Union Bank Plc, Wema Bank Plc, Fidelity Bank Plc, and FBN Holdings are yet to declare their financial statement or dividend for 2022, market analysts have commended the resilience of Nigerian banks.

Capital market analysts praised the corporate earnings and dividend payout of Zenith Bank Plc and other financial institutions, stating that the Nigerian banking sector is resilient in overcoming both domestic and foreign challenges.

Shareholders have also expressed their satisfaction with the dividend payout, emphasizing the consistency of some companies in dividend payout despite the economic hardship.

Chairman Progressive Shareholders Association (PSAN), Boniface Okezie, stated that Nigerian banks performance shows resilience in the corporate world and gives hope for the domestic economy.

Dividendpaying stocks are a good source of stable income streams for investors.

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