78 bank directors get N10.34bn dividend in 2016

AT the backdrop of the recession the nation’s economy
slipped into last year alongside inflationary pressures,
corporate results from the banking sector so far
released indicate significant increases in fortune for the
investors.

.  Jim Ovia, Tony Elumelu & Herbert Wigwe


While the general shareholders of the first batch of
seven banks announcing results so far received a total
dividend income of N162 billion, indicating a rise by 13
per cent against N143.3billion in 2015, directors of the
banks numbering 78 recorded 20.5 per cent rise in their
dividend income at N10.34 billion as against N8.58
billion in 2015.

The banks are Zenith International Bank Plc, Fidelity
Bank Plc, Access Bank Plc, United Bank for Africa, UBA
Plc, FCMB Group Plc, Stanbic IBTC Holdings Plc and
Guaranty Trust Bank Plc.

Financial Vanguard analysis revealed that three of the
banks, namely, Zenith Bank, Access Bank and UBA
accounted for 64 per cent of the total dividend declared
by the seven banks, while their directors smiled home
with N9.42 billion.

Further analysis showed that the Chairman of Zenith
Bank Plc, Jim Ovia, the Group Managing Director/Chief
Executive Officer of Access Bank Plc, Herbert Wigwe,
and the Chairman of UBA, Tony Elumelu, benefited the
most, receiving N9.25 billion, representing 89.5 per cent
of the total dividend received by the 78 directors during
the year.

Growth in dividend income


The dividend collected by the trio of Ovia, Wigwe and
Elumelu also represents 5.7 per cent of the N162 billion
total dividend declared by the seven banks and 8.9 per
cent of N103.99 billion total dividend declared by the
three banks in 2016.

Though the growth in dividend
income is considered commendable by some capital
market analysts who are looking at the recessionary
economic environment, it however, indicated a decline in
real returns to the general shareholders whose income
lagged behind average inflation rate of over 16 per cent
during the year. But this also indicated that the basket
returns to directors towered above the inflation rate.

Speaking to select media personalities last weekend in
Abuja, the Special Adviser to the President on Economic
Matters, Office of the Vice President, Dr. Adeyemi
Dipeolu, expressed surprise at the profits and returns
being announced by most corporate organizations for the
year ended 2016 against the perspective of adverse
economic circumstance.

However, Managing Director of Guaranty Trust Bank Plc,
Mr. Segun Agbaje, had told journalists earlier this month
at the heels of the results rolled out by some banks that
the increases in figures of the bottom-line and returns
does not reflect a contradictory performance against the
economic situation, explaining that when measured
against real exchange rate developments where Naira,
the reporting currency, had depreciated by almost 60 per
cent, the returns were not as impressive.

He argued
that when the depreciation is discounted the corporate
results would be in the negative.

Shareholding by banks


Furthermore, breakdown of the shareholding structure of
the seven banks showed that the 78 directors held 10.15
billion shares comprising of 4.4 billion direct and 5.75
billion indirect shares, which represent 5.5 per cent of
the banks’ total 184.8 billion shares.

The 10 directors of
Zenith Bank hold 2.99 billion or 9.5 per cent of the bank’s
issued shares of 31.4 billion. This was followed by
Access Bank where 13 directors hold 2.87 billion shares
or 9.9 per cent of the 28.9 billion issued shares of the
bank.

Stanbic IBTC came third with its six directors holding
1.259 billion shares, representing 12.6 per cent of the 10
billion issued shares of the bank.

The 17 directors of
UBA ranked fourth, holding 2.22 billion shares,
representing 6.1 per cent of 36.3 billion of the bank’s
issued shares.

 FCMB was the next with its seven
directors accounting for 2.22 billion shares or 11.2 per
cent of the bank’s 19.8 billion issued shares.

GTB, which has 12 directors ranked sixth with the
directors accounting for 64.02 million shares or 0.2 per
cent of 29.4 billion ordinary shares of the bank in 2016,
while Fidelity Bank, came last with its 13 directors
holding 515.32 million shares, representing 1.8 per cent
of 28.96 billion the bank’s shares.

Zenith, Access, UBA account for 64.2% declared dividend


Zenith Bank, Access Bank and UBA accounted for 64 per
cent and 60.2 per cent of the total dividend declared by
the seven banks in 2016 and 2015 respectively. The total
dividend declared by the three banks amounted to
N103.99 billion in 2016 and N88.71 billion in 2015.

In 2016, the 40 directors of the three banks, UBA, Zenith
and Access Bank, went home with N9.42 billion of the
N103.99 billion dividend declared by the three banks.
This represents 5.9 per cent of the N162.6 billion
dividend declared in 2016 by the seven banks and 9.22
per cent of the N103.99 billion dividend declared by the
three banks in 2016.

In 2015, the directors of the three banks received N6.83
billion or 7.96 per cent of the N88.71 billion total
dividend declared by the three banks for the year.



This
also represents 4.64 per cent of the N143.3 billion
dividend declared by the seven banks for the year.

Details of directors’ dividends


The 10 directors of Zenith Bank received N6.06 billion or
9.5 per cent of N63.42 billion dividend declared by the
bank in 2016. Access Bank’s 13 directors followed with
N1.70 billion, representing 9.0 per cent of N18.80 billion
dividend declared by the bank in 2016. The 17 directors
of UBA ranked third, receiving N1.66 billion or 7.6 per
cent of N21.77 billion dividend declared by the bank.

For GT Bank, its 12 directors smiled home with N707.03
million dividend, representing 1.4 per cent of N52.09
billion dividend proposed by the bank in 2016, while the
13 directors of Fidelity Bank got N86.22 million or 2.1 per
cent of N4.05 billion dividend declared by the bank in
2016. Stanbic IBTC Holdings Plc’s six directors got
N62.96 million dividend, representing 12.6 per cent of
N500 million dividend declared by the bank. FCMB
Group’s seven directors got N22.99 million, representing
1.2 per cent of N1.98 billion dividend declared by the
bank within the year.

Top 10 directors by dividend received


Analysis of the top 10 dividend earning directors in 2016
showed that Jim Ovia, the chairman of Zenith Bank
earned the highest dividend of N5.95 billion followed by
Herbert Wigwe, the Group Managing Director/Chief
Executive Officer of Access Bank Plc who earned N1.75
billion.

Tony Elumelu, UBA chairman, was the third highest
dividend earning director with N1.55 billion, followed by
Olusegun Agbaje, Managing Director/CEO of GTB and
Adaora Umeoji, the Deputy Managing Director of Zenith
with N662.56 million and N63.87 million dividend
respectively.

Others are Rahan Matani, a non-executive director in
Stanbic IBTC Holdings Plc, who came sixth with dividend
payout of N53.23 million. Dan Okeke, an executive
director in UBA came seventh with N22.71 million; Mrs
Rose Okwechime, another director in UBA got N22.59
million dividend, while Mr. Christopher Eze, the former
chairman of Fidelity Bank Plc, and Ladi Balogun, a non-
executive director in FCMB Group were the last on the
list with N21.53 million and N20.02 million dividend
payout respectively.

Highest dividend earning directors by banks


In GTB, Mr. Olusegun Agbaje, who is the Managing
Director/Chief Executive, emerged the highest dividend
earner, receiving N662.26 million dividend in 2016,
followed by Mr. Ademola Odeyemi, Executive Director in
charge of International Banking, who receivedN18.7
million dividend. Mrs Catherine Echeozo, the Deputy
Group Managing Director came third with N17.1 million
dividend payment.

In Stanbic IBTC, Mr Ratan Mahtani, a non-executive
director, with indirect holding in the bank, got the
highest dividend, earning N53.23 million.

 He was
followed by Atedo Peterside, erstwhile chairman, who
earned N6 million through an indirect holding and Ifeoma
Esiri, a non-Executive director, who earned N2.3 million
through direct and indirect equity interest.
In FCMB, Mr Ladi Balogun,a non-executive director got
the highest dividend as he smiled home with N20.02
million, followed by Dr Jonathan Long, chairman, who
got N1.11 million dividend, while Mr Olusegun Odubogun,
non-executive independent director, ranked third in the
bank, earning N800,000 (Eight hundred thousand naira
only).

In UBA, Mr. Tony Elumelu, chairman, topped other
directors as he received N1.55 billion dividend. Mr. Dan
Okeke, an executive director, followed far behind Elumelu
with N22.71 million dividend, while Mrs. Rose
Okwechime, non-executive director, with only indirect
shareholding in the bank, came third with N22.59 million
dividend.

In Access Bank, Herbert Wigwe, Group Managing
Director/Chief Executive, emerged the top dividend
earner with N1.75 billion dividend through direct and
indirect holdings. Next was Obinna Nwosu, the former
Group Deputy Managing Director, who received N19.50
million dividend, while Titilayo Osuntoki, executive
director in charge of Business Banking, received N18.67
million dividend.

In Zenith Bank, Jim Ovia, the chairman, towered above
others, going home with N5.95 billion dividend in
2016. Ms. Adaora Umeoji, the Deputy Managing Director,
followed with N63.87 million dividend, while Peter
Amangbo, Group Managing Director/CEO ranked third,
receiving N10.1 million dividend.

In Fidelity Bank, Chief Christopher Ezeh, former chairman
of the bank, emerged the highest dividend earner with
N21.53 million dividend. Nnamdi Okonkwo, Managing
Director/CEO, came second with N14.14 million
dividend, while Mr. Robert Nnana-Kalu, a non-executive
director in the bank got N14 million dividend.