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HomeFinancial ServicesEcobank Nigeria shareholders to receive ₦66.6 as Dividend

Ecobank Nigeria shareholders to receive ₦66.6 as Dividend

Pan-African banking group, Ecobank Transnational Incorporated (ETI), has announced that its shareholders especially those in Nigeria, will receive N66.6 as a dividend for the year ended December 31, 2021.

This amount is more than 5 times higher than the share price of the banking stock on the floor of the Nigerian Exchange (NGX) Limited.

As a matter of fact, this is the first time Ecobank shareholders will be receiving dividends since 2016.

The company’s stocks were traded flat at N11.80 per unit at the close of transactions at the exchange on Tuesday, March 15, 2022.

The exchange rate of the Naira to the Dollar no doubt led to the high payout to the shareholders in Nigeria.

What Ecobank is saying about the dividend

Ecobank is paying a cash reward of $0.16 per share, totalling $40 million for the year ended December 31, 2021. This implies approximately CFA90, N66.6 per share.

According to the Company Secretary, Mr Madibinet Cisse, “We are pleased to inform our shareholders and the public that the board of ETI, at its meeting of February 25, 2022, approved the Ecobank consolidated audited accounts for the year ended December 31, 2021, subject to relevant regulatory approvals.

“The board also recommended the payment of a dividend of $0.16 per share being a total amount of circa $40 million. The relevant resolutions will be presented for shareholders’ approval at the upcoming Annual General Meeting (AGM) of ETI.”

He further stated that, “The details of the audited accounts will be published upon approval of relevant regulators.

“Consequently, the closed period which commenced from January 1, 2022, will continue until 24 hours after the audited accounts for the year ended December 31, 2021, are released to the stock exchanges on which Ecobank Transnational Incorporated is listed.”

What you need to know

The dividend payout has triggered the share price in the various stock exchanges where ETI is listed. In Nigeria, ETI featured in this week’s selection for trading well below its real value, meaning it stands a good chance of considerable price appreciation in the future.

The lender’s price-to-earnings (PE) ratio as of Friday was 2.54x, with earnings per share (EPS) of N4.32.

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