Stanbic IBTC to cut shareholders’ dividends

Stanbic IBTC management has proposed that the shareholders of the firm be paid N2 as the final dividend for the period ended December 31, 2021, amid the company’s dwindling profit.

In a statement released to the investing public and the Nigerian Exchange Limited (NGX), the board said a total N25,913,994,326.00 will be paid to shareholders.

This brings shareholders’ total dividend for the period to N38.87 billion, having previously paid an interim dividend of N12.95 billion during the period under review.

Dividend payment for last year was below the N44.42 billion Stanbic IBTC paid out to shareholders in 2020, reflecting declining earnings in the Nigerian lender.

It was gathered that Stanbic IBTC revenue in 2021 fell by -11.8% to N206.64 billion, against the N234.44 billion generated a year before; with the earnings decreasing by N27.8 billion year-on-year.

Profit after tax also dwindled by -31.5%, as the company recorded N56.96 billion in twelve months of last year, failing to surpassing the N83.21 billion the bank reported in 2020.

Despite COVID-19 forcing Stanbic IBTC to operate a skeleton business in 2020, its profit for the year was still well above that of 2021, a year it operated fully, losing out on N26.24 billion.