The board of directors of Stanbic IBTC Holdings Plc yesterday indicated that the holding company could issue up to 211.7 million ordinary shares of 50 kobo each as scrip dividend shares if shareholders opt to receive their first half interim dividend in shares.
Stanbic IBTC Holdings had mid last month announced interim dividend of N10.11 billion for the first half of 2018, representing interim dividend per share of N1, 66.7 per cent above 60 kobo paid for the corresponding period of 2017.
Under a resolution passed at its extraordinary general meeting in August 2016, shareholders of Stanbic IBTC Holdings may choose to receive dividends declared by the company, up to year 2020, either in cash or as new ordinary shares in the company.
In a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday, the board of the holding group indicated that the reference price to be used for the conversion of the cash-to-scrip shares option would be N47.75 per share, implying a total of 211.7 million shares for the N10.11 billion cash dividend.
Under the conversion programme, the reference price to be used in determining any scrip dividend allotment shall be the volume weighted average price (VWAP) of the company’s shares on the NSE for the five business days commencing on the day the ordinary shares are first quoted ex-dividend.
The qualification date for the interim dividend was August 28, 2018 while the payment date for the dividend is September 26, 2018. Where a shareholder elects to receive the whole or a part of his dividends by way of new ordinary shares, such scrip shares shall only be allotted after receipt of any required regulatory.
In order to be valid, any scrip dividend election by shareholders, must be made to the company’s Registrars, not later than seven days prior to any dividend payment date, implying that all completed forms for shares dividend option must reach the Registrars on or before close of business on Wednesday September 19, 2018.
However, shareholders who elect to receive their dividends in cash, are not required to take any action as they will have their cash dividends credited to them on the dividend payment date.
Key extracts of the audited report and accounts of Stanbic IBTC Holdings for the six-month period ended June 30, 2018 showed that gross earnings grew by 17 per cent while profit after tax jumped by 79 per cent. Gross earnings rose from N97.20 billion in first half 2017 to N114.21 billion in first half 2018. Profit before tax also leapt by 74 per cent to N50.73 billion in first half 2018 compared with N29.17 billion in the corresponding period of 2017. Profit after tax increased to N43.08 billion in 2018 as against N24.11 billion recorded in the corresponding period of 2017. Total assets closed first half 2018 at N1.37 trillion as against N1.39 trillion recorded in December 2017.
Further analysis showed that the group maintained capital adequacy levels that are significantly above the regulatory limit of 10 per cent. The group’s total capital adequacy ratio for the period closed at 27.4 per cent while the commercial banking entity had a ratio of 23.0 per cent. Group Tier 1 capital adequacy ratio stood at 23.3 per cent with the bank having 18.5 per cent). The improvement in group capital adequacy ratio to 27.4 percent from 23.5 percent in December 2017 was as a result of the significant increase in retained profit.