UBA DECLARES N78.70 BILLION FINAL DIVIDENDS TO SHAREHOLDERS FOR 2023

UBA announced a final dividend of N78.7 billion for shareholders for the 2023 financial year (FY 2023). This translates to N2.30 per share held. Including the N0.50 per share interim dividend paid for the first half of 2023 (H1 2023), UBA distributed a total dividend of N2.80 per share, amounting to N95.8 billion.

This total payout represents a significant increase of 154.8% compared to the N37.6 billion paid in total dividends for 2022. However, it’s important to note that despite the higher total dividend amount, the proportion of profit allocated to dividends (payout ratio to profit after tax or PAT) actually decreased. The payout ratio dropped from 22.1% in 2022 to 15.8% in 2023.

According to a notice filed with the Nigerian Stock Exchange (NGX), UBA will only distribute the final dividend to shareholders whose names appear in the company’s register of members by the close of business on Friday, May 10, 2024. The payment itself will be made on May 24, 2024.

The notice also encourages shareholders who haven’t yet completed the e-dividend registration process to do so to receive their dividends electronically.

Here are some additional points to consider:

• Unclaimed dividends by UBA shareholders increased in 2023 to N14.9 billion, an 18% rise from N12.6 billion in 2022.

• The notice advises shareholders with unclaimed dividend warrants or share certificates to either complete the e-dividend registration or contact the company’s registrar for assistance. Africa Prudential Plc is the registrar for UBA.

• UBA reported a profit after tax (PAT) of N607.7 billion for FY 2023, a substantial jump of 257% compared to the N170.3 billion PAT in 2022. It’s worth noting that this PAT figure includes a net foreign exchange (FX) revaluation gain of N26.6 billion.

• However, a directive from the Central Bank of Nigeria (CBN) restricts banks from using FX revaluation gains for dividend payments or operational expenses.