Business
9 banks pay N158bn as dividends to shareholders in 2015
—Banks’ profits drop by N11.1bn
—Shareholders extol management for surviving challenging times
Nine banks quoted on the Nigerian Stock Exchange, NSE paid 42.2 per cent or N158.4 billion of their profit to shareholders as Return on Investment, ROI , out of the total banks’ Profit After Tax, PAT, of N375.8 billion for the financial year 2015.
Findings show that the nine banks’ PAT declined by N11.1 billion or 2.9 per cent as they recorded a total of N375.8 billion for the financial year 2015 when compared to the figure of N386.9 billion recorded in 2014. The banks’ managements have decried the harsh operating environment and the risks that characterised the period under review as high operating cost impacted negatively to reduce profits margins .
The nine banks which financial reports for the year under consideration were examined are Access Bank Plc, Ecobank Transnational Incorporated, ETI Plc, Guaranty Trust Bank, GTBank Plc, Sterling Bank Plc, and United Bank for Africa, UBA Plc. Others are Zenith Bank Plc, Fidelity Bank Plc, Wema Bank Plc, and Union Bank Nigeria Plc.
The report findings showed that Access Bank declared Profits After Tax of N65.9 billion, while it paid N15.2 billion as dividend ; Ecobank Transnational Incorporated PAT was N21.3 billion and releasing N7.1 billion as dividend; GTBank posted N99 billion PAT , while it paid dividend of N51.33 billion ; Sterling Bank recorded 10.3 billion, while its shareholders were paid N1.7 billion as dividend. UBA on its part declared N47.6 billion PAT, while it paid its shareholders N15.7 billion as dividend; Zenith Bank was not different as it declared N98.8 billion, while it paid shareholders N62.8 billion as dividend. Fidelity Bank recorded N16.3 PAT, and paid N4.6 billion to shareholders as dividend. It was the same story for Union Bank which declared N2.3 billion PAT and declared no dividend, just as Wema Bank declared N13.9 billion and it did not proposed any dividend to shareholders. Further analysis showed that the nine banks’ reward to shareholder by dividend payout in 2015 grew by 18.8 per cent from N133.3 billion in 2014 to N158.4 billion. Zenith Bank paid the highest dividend in 2015 recording N62.8 billion compared to N54 billion in 2014, followed by GTBank, which recorded N51.3 billion as against N51.5 billion in 2014.
Others are UBA N15.7 billion as against N10.6 billion, Access Bank N15.2 billion as against N5.7 billion, Ecobank Transnational N7.1 billion as against nil in 2014, Fidelity Bank N4.6 billion as against N5.2 billion, Sterling Bank N1.7 billion as against N5.4 billion in 2014. Wema Bank and Union Bank did not declare dividend for the two years period.
Commenting on the performance of the banks for the financial year 2015, Mr. Emeka Emuwa, Chief Executive Officer said: “2015 was a challenging year across board, with significant operational and economic headwinds. Notwithstanding the difficult operating environment, Union Bank maintained its focus on business and transformation initiatives, which yielded desired results. Our gross earnings, excluding one-time gain on sale of subsidiaries, are up by 11 per cent compared to 2014. With the launch of a re-energised brand identity and a retail model focused on customer needs, we increased our customer deposits by 12 per cent year-on-year.
“Our simpler and smarter banking solutions have enabled us make strides in customer service delivery, which has reflected in independent industry surveys. We continue to strengthen our e-banking platforms as we acquire new customers and migrate existing ones to these platforms, realising increased gains in revenues and reducing service costs.”
Looking ahead, he said “With the operating environment expected to remain challenging, Union Bank remains focused on delivering quality financial services to our customers and value to all stakeholders. We believe we are well positioned to take advantage of opportunities in emerging sectors of the economy as well as deepen our stronghold in key geographies around the country.”
In his own comment on the result, Managing Director/Chief Executive Officer of Wema Bank Plc, Mr. Segun Oloketuyi, said, “Given the tough operating environment in the first half of 2015 attributable to economic headwinds, regulatory restrictions and political uncertainty, the Bank has been able to sustain its financial performance, albeit, on a lower level compared to the same period in 2014. The first quarter of the year was characterized by election-related activities and political maneuverings with limited emphasis on economic matters, while the second quarter was largely characterized by the continued pressure on the currency, the tight monetary policy conditions and the low level supply of petroleum products. All these issues affected consumer discretionary spending and indeed the growth in our Retail volumes.”
The Chairman of Access Bank, Mosun Belo-Olusoga , in his response said “ Achieving sustained growth and profitability was a difficult task for Nigerian banks in 2015. The banking industry faced increased regulation and monetary tightening by the Central Bank, who during the first half of the year, actively sought to preserve the nation’s reserves and ensure exchange rate stability. These efforts, coupled with macro inconsistencies, resulted in a landscape characterised by pressures on earnings and capital, stiffer competition for lower –cost deposits and increased funding costs across the industry. Banks were more risk conscious, which translated to marginal asset growth on the back of lower oil prices and pressures on the FX market.”
Speaking on its own bank’s performance durig the year under review, the Managing Director/CEO of Guaranty Trust Bank Plc, Mr. Segun Agbaje said: “That the bank’s financial performance in 2015 is an indication that we have earned the loyalty of our customers and an attestation of the hard work and dedication of our staff, management and Board. The group has delivered a respectable Profit Before Tax of N120.7billion despite an extremely challenging business environment in 2015. As a bank, we will continue to actively partner with our customers and grow our business in a sustainable manner that is not only driven by profit objective, but with an increased focus on empowering our customers with a view to growing Nigerian economy. Also, we remain committed to maximising shareholders’ value and delivering superior and sustainable returns whilst actively expanding our franchise in select, high growth African markets where we believe we have a competitive advantage.”
Commenting as well, the Group Managing Director, UBA Plc, Mr. Phillips Oduoza, said, “Our 2015 profit is a new high, reflecting the hard work and discipline of our board, management and staff in creating value for all stakeholders. We remain committed to growing in a responsible manner that aligns with our vision of building an enduring institution.”
He said the bank’s resilient business model, geographic diversification, proactive strategies, and strong governance created an edge for it through the year. “We will continue to invest in our future whilst managing cost tightly to generate strong returns to shareholders,” he assured.
Shareholders react
The Chairman of Progressive Shareholders Association of Nigeria, PSAN, Mr. Boniface Okezie said “We must commend the banks operating in Nigeria for their resilience in this turf operating environment. The banks were operating on high cost as a result of lack of power and other infrastructure. The regulatory environment was also not friendly for the banks during the period under review. Therefore, whatever dividend they gave us we appreciate and look forward for improved dividend when the economy bounce back. As the banks were able to reward us with 42 per cent of the profits made, we must commend them. Beside, given the insufficient liquidity in the economy the banks have to plough back some percentage of profits made to continue business.”
Commenting as well, the President, Renaissance Shareholders Association of Nigeria, RSAN, Ambassador Olufemi Timothy said “Our major concern is the cash dividend that we are getting from these banks. Since it is not the post dated type of dividend where dividend declared takes longer period, we are satisfied with the portion of the profits given to us as reward for our investment. It is not easy for the banks to even post profit let alone paying dividend. We as shareholders are calling on the federal government and the regulators to create favourable policies that will enhance liquidity and the economy in general. Government should fix power, roads, water and other infrastructure as the rate of inflation is the alarming side.
“There is liquidity crisis and banks are going abroad to source for cheaper funds to enhance their capital and play their traditional role of lending, but they are facing lots of constraints. Now that the forex is liberalised, we believe the capital market will firm up.”
Commenting also, the Chairman of Proactive Shareholders Association of Nigeria, PSAN, Mr. Oderinde Taiwo , said “Despite these challenges, banks that are able to manage their operations, record profit and declare dividends should be commended. I therefore believe the banks should be hailed.”
Speaking as well, a member of Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude said the banks needed to be commended considering the challenging environment in which they operated.
“It is heart warming and encouraging to note that some of the banks are making profit and rewarding shareholders with dividends. We all see the rising cost of running businesses in the country. Besides, the challenging environment has made many companies to suffer losses and thereby exposing the banks to higher risks.”
National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.
The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.
The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.
According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.
This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.
Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.
On the flip side, some sectors experienced sharp declines in company income tax remittances.
Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.
The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.
In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.
Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.
Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.
At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.
Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.
Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”
Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.
“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.
The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.
This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN
Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.
Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.
Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.
Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.
Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.
Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.
In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.
“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”
-
News3 days agoNigeria to officially tag Kidnapping as Act of Terrorism as bill passes 2nd reading in Senate
-
News3 days agoNigeria champions African-Arab trade to boost agribusiness, industrial growth
-
News3 days agoFG’s plan to tax digital currencies may push traders to into underground financing—stakeholders
-
Finance1 week agoAfreximbank successfully closed its second Samurai Bond transactions, raising JPY 81.8bn or $527m
-
News1 week agoFG launches fresh offensive against Trans-border crimes, irregular migration, ECOWAS biometric identity Card
-
Economy3 days agoMAN cries out some operators at FTZs abusing system to detriment of local manufacturers
-
News3 days agoEU to support Nigeria’s war against insecurity
-
Uncategorized3 days agoDeveloping Countries’ Debt Outflows Hit 50-Year High During 2022-2024—WBG