Which Nigerian Banks Have Paid the Most Dividends in the Last 5 Years?

When it comes to investing in banks, dividends are a key attraction. They’re essentially a share of the profit that companies return to their shareholders, and in Nigeria’s dynamic financial sector, dividends are a sign of a bank’s health and its ability to generate consistent profits. 

A recent report from Ernst and Young Global Limited (EY), a prominent tax and advisory firm, predicts that Nigerian banks are set to significantly increase their dividend payouts in the upcoming years.

Over the past five years, some Nigerian banks have not just maintained but significantly increased their dividend payouts, demonstrating robust financial health and appealing strongly to investors. Here are the top Nigerian banks that have led the pack in dividend payments from 2019 to 2024, ensuring their shareholders benefit from their financial successes.

Zenith Bank

Zenith Bank stands at the pinnacle of dividend payouts, distributing a whopping ₦505.48 billion to its shareholders over the past five years. 

This impressive sum comes from an equally striking profit of ₦1.6 trillion during the same period. The consistency and size of Zenith’s dividends make it a beacon for investors looking for stability and substantial returns in the Nigerian banking sector.

Guaranty Trust Holding Company (GTCO)

GTCO secures the second spot with a total dividend payout of ₦443 billion over the five-year span. Known for its strategic operations and robust service delivery, GTCO has not only managed to reward its shareholders handsomely but has also cemented its reputation as a reliable bank for consistent financial returns, reflecting its strong operational ethos and customer-centric approach.

United Bank for Africa (UBA)

Coming in third, UBA has paid out ₦219.56 billion in dividends from its after-tax profits of ₦1.1 trillion. UBA’s wide-reaching influence across Africa and its diversified business model have enabled it to maintain a solid profit trajectory and, by extension, a reliable dividend stream. This has not only pleased shareholders but also strengthened UBA’s position in the market as a leading pan-African bank.

Access Holdings

As Nigeria’s largest bank by total assets, Access Holdings has not lagged in rewarding its investors, declaring ₦215 billion in dividends from a five-year profit after tax of about ₦1.12 trillion. Access has demonstrated a strong commitment to shareholder value, with a notable compounded annual growth in dividend per share by 35%, the highest among the major banks.

Stanbic IBTC

Stanbic IBTC rounds out the top five with ₦212.1 billion in dividends. What sets Stanbic apart is its high dividend payout ratio of 48.6%, the highest among the banks reviewed. This indicates a robust return on profits to shareholders, making Stanbic IBTC a compelling choice for investors focused on dividend income.