With about a year left for banks to raise their capital base as directed by the Central Bank of Nigeria (CBN), many banks are luring shareholders with mouth watering dividend payput, recent trend has revealed.
Statistics show thatt six major banks, which have recently published their 2023 audited accounts, are set to pay out a combined N379 billion in dividends in the coming months. This compares to N289.1 billion declared as final dividends a year earlier (+31.3 per cent).
When interim dividends are added to the figures, it escalates to N465.3 billion.
As the deadline for the CBN’s recapitalization requirement nears, these banks are estimated to need a staggering N4.2 trillion in fresh capital over the next 24 months. However, rather than conserving their capital through reduced dividends, these institutions are proceeding to reward their shareholders.
This includes plans for significant capital raises through rights issues following these hefty dividend payouts.
Statistics gleaned from Nairametrics show that Access Bank, which is Nigeria’s largest bank by total assets, has declared a final dividend of N63.9 billion, despite facing a requirement to raise about N248 billion in fresh capital.
Similarly, Zenith Bank, leading in profitability, plans to distribute N109.8 billion in dividends before addressing its capital need of N229 billion.
