UBA Board Okays Payment of Final Dividend for FY2020

By Dipo Olowookere

Shareholders of United Bank for Africa (UBA) Plc will receive a dividend for the 2020 financial year, which ended December 31.

However, the amount to be paid by the financial institution to investors for their reward for investing in the company has not been disclosed to the public at the moment.

On Wednesday, the board of UBA gathered for a crucial meeting to look into the financial statements of the lender and deliberate on the possibility of paying cash reward.

At the gathering, members of the board led by its chairman, Mr Tony Elumelu, approved the financial results and the payment of a final dividend.

A brief analysis by Business Post of the final dividend payout of UBA showed that in the 2015 fiscal year, it paid shareholders 40 kobo per unit and in 2016, it was increased to 55 kobo per unit.

In the 2017 accounting year, the final dividend was raised to 65 kobo per share and in the 2018 financial year, the dividend payout was retained at 65 kobo per unit, but it was increased to 80 kobo per share in the 2019 fiscal year.

For the 2020 reporting year, the financial dividend is not expected to go higher because of the effect of the COVID-19 pandemic on business operations last year.

In the first half of 2020, UBA reduced its interim dividend by 15 per cent or 3 kobo to 17 kobo instead of the 20 kobo it paid to shareholders in the corresponding period of 2019.

By next month or latest by March 2021, the financial results are expected to be released to the investing public but at the moment, they are being forwarded to the Central Bank of Nigeria (CBN) for approval.

“Please be informed that the board of UBA at its meeting which held on Tuesday, January 26, 2021, considered and approved the group audited consolidated and separate financial statements for the year ended December 31, 2020, and payment of a final dividend, subject to the approval of the CBN.

“Further to the above, kindly be advised that the Nigerian Stock Exchange (NSE) and the investing public would be immediately notified upon approval of the group audited consolidated and separate financial statements for the year ended December 31, 2020, by the CBN,” a notice from the lender said.