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Stanbic IBTC equity price, turnover sustain rising tempo

With the recent proposal of 5 kobo dividend payment announcement by Stanbic IBTC Holdings Plc for the 2015 financial year ended December 31st 2015, the bank has emerged as the financial institution that paid least dividend for the year under consideration.
The bank’s register closure date of January 03, 2017, according to recent publication by the Nigerian Stock Exchange (NSE) in its company news segment showed that Annual General Meeting (AGM) for consideration of 2015 audited results and approval of the proposed dividend will hold in Lagos on 7th March, while the dividend if approved would be paid on 9th March.

Stanbic IBTC Holdings as at the close of trade on the floor of Nigerian Stock Exchange (NSE) has a market capitalization of N161, 000,000,000.00 and shares Outstanding 10,000,000,000.
Though few other financial institutions were unable to pay dividend in 2016, among the banks that paid dividend for the year, Stanbic IBTC Holdings 5 kobo dividend was 45 per cent of 9 kobo paid by Sterling Bank, 50 per cent of 10 kobo paid by FCMB group and 210 per cent less of 16 kobo dividend paid by Fidelity bank in 2016 financial.

As investors expect the release of 2016 audited results in the first quarter 2017, cross section of retail shareholders have started making projections on the expected earnings of banks and other financial institutions, a motivator for further investments and returns on investments.
Recap of dividend paid by other banks in 2016 for the 2015 financial year shows that Guarantee Trust bank (GTBank) paid 152 Kobo, United Bank for Africa rewarded shareholders with 40 Kobo, while Zenith Bank paid 155 Kobo dividend.
Also Access Bank paid 30 Kobo, Ecobank Transnational Incorporated (ETI) paid 0.2 Cents, Fidelity Bank paid 16 Kobo, while FBN Holdings rewarded shareholders with 15 Kobo dividend in 2016.
FCMB Group paid 10 Kobo, while Sterling Bank paid dividend of 9 Kobo in 2016. Findings show that irrespective of the headwinds which characterized 2016 financial year, dividends from performing banks would be enhanced in 2017.
The company, last week ended January 20th 2017, following the release of its 2015 financial result recorded increase in equity price, a development that a cross section of analysts hinged on expectations of dividend payment for the 2015 and 2016 financial years respectively.

However, following the release of the bank’s fourth quarter 2016 results which was delayed due to a prolonged issue the company had with the Financial Reporting Council (FRC), which has now been resolved, the company’s share price and turnover has maintained an upward swing.
Having opened the past week 12th January 2017 at 15.03 per share and turnover of 2, 720, 366, the trend continued on 13th as the equity price peaked at N15.52, driven by 282,163 shares turnover.
The equity price further advanced to N15.82 on 16th January as investors continued to deepen interest in the holding company as 11,973,111 shares exchanged hands. The stock price peaked at N16.10 per share last week Friday, January 20th, with 580,932 turnover.

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