United Bank of Africa Plc‘s (UBA) shareholders have unanimously approved a total dividend payment of N29.9 billion for 2018 financial period.
The resolution came during the company’s 57th Annual General Meeting which took place in Lagos on Tuesday, April 23, 2019.
Addressing the shareholders, the company’s Chairman, Tony O. Elumelu (C.O.N), spoke about the upgrade of operations in the United Kingdom and the formal opening of the Mali business. He added that the team in both countries are set to change the narrative of banking. This would strengthen the overall growth trajectory of the Group, he said.
“We are optimistic about the policy environment in most African economies, where we operate, as we expect diligent implementation of fiscal policies to help stimulate inclusive economic growth, ease macro pressures and lower the cost of doing business. I am very optimistic that we will sustain the strong growth trajectory, as we continue to gain market share across Africa, leveraging our core values of Enterprise, Excellence and Execution.”
A dividend is a payment made by a company to its shareholders, usually as a distribution of profits. When a company earns a profit or surplus, it reinvests a portion of the profit in the business (retained earnings) whilst paying a portion as dividends to the shareholders.
Distribution to shareholders may be in cash (usually a deposit into a bank account) or the issuance of further shares, otherwise known as shares repurchase. But this is usually if the company has a dividend reinvestment plan.
In other words, a dividend is allocated as a fixed amount per share with shareholders receiving a dividend in proportion to their shareholding. For the joint-stock company, paying dividends is not an expense; rather, it is the division of after-tax profits among shareholders.
United Bank for Africa Plc (UBA), together with its subsidiaries, primarily provides corporate, commercial, and retail banking services in Nigeria, rest of Africa, and internationally.
UBA Plc is currently trading N6.95 on the floor of the Nigerian Stock Exchange (NSE).