We are well into the earnings season which is the period when listed companies publish interim and audited accounts for the period ended June 30th 2017.
It is also a period where investors evaluate their portfolios based on the results released by the companies. For companies that post great results, it is likely that you see their share price rise while those that post weaker results could see their share price nose dive.
Another item of importance is the interim dividend typically declared in this period. June 30th is typically represents the half-year period for most companies and is also when they decide to declare interim dividends. Dividends as you might know already, is a critical factor in also deciding how shares get valued.
Most Nigerian banks have their half-year at the end of June and also declare interim dividend. Since not all the banks declare dividends, we will take this opportunity to introduce you to banking stocks that are likely to declare interim dividends this month.
GT bank has a track record for paying interim dividends, as it has done so in the past 10 years. The bank had last year paid an interim dividend of 25 kobo per share, and this year may not be different. Profit after tax increased from N25.6 billion in 2016 to N41.4 billion in 2017. Q1 2017 results show a massive increase from 90 kobo in 2016 to 147 kobo in 2017.
Zenith Bank In a notice sent to the Nigerian Stock Exchange (NSE), last week, Zenith Bank had hinted that its directors are considering a possible interim dividend payment. The bank, last year paid an interim dividend of 25 kobo per share. Q1 2017 results show that profit after tax increased from N26.5 billion in Q1 2016 to N37.4 billion in Q1 2017. Earnings per share increased from 84 kobo in Q1 2016 to 119 kobo in Q1 2017.
Stanbic Ibtc Stanbic Ibtc had a tough 2016 which saw its results delayed for almost a year and this also led to it paying a small dividend of 5 kobo per share. However, the stock has bounced back and is one of the better performers this year. The bank also has a culture of paying half year dividends and its Q1 2017 results were also a massive improvement from the comparative period for last year. Profit after tax more than doubled from N7.7 billion in 2016 to N16 billion in 2017. Earnings per share also increased from 68 kobo in 2016 to 155 kobo in 2017.
UBA In a notice of an upcoming board meeting, UBA stated that the possibility of paying an interim dividend would be considered. UBA last year paid an interim dividend of 20 kobo per share. First quarter 2017 results were also positive with profit after tax increasing from N16.9 billion in 2016 to N22.3 billion in 2017. Earnings per share also increased from 49 kobo in 2016 to 63 kobo in 2017.
Access Bank Access bank also has a culture of paying interim dividends. The bank between 2013-2016 has consistently paid at least 25 kobo as interim dividend. In a notice sent to the NSE early this month, the bank had hinted that its directors would consider the possibility of paying an interim dividend. Q1 2017 show an increase in both Profit after tax and earnings per share. Profit after tax increased from 19.4 billion in 2016 to N26 billion in 2017. Earnings per share also increased from 67 kobo in 2016 to 91 kobo in 2017.