Billionaire investor and Chairman of United Bank for Africa (UBA), Tony Elumelu, is set to receive a massive N12.71 billion dividend payout for the financial year ending in 2024, following the bank’s exceptional financial performance. This milestone highlights Elumelu’s strong position within the banking industry as UBA continues to deliver impressive growth and shareholder returns.
Elumelu, one of the key shareholders of UBA, holds a significant stake in the bank with a total of 2,542,511,824 shares under his ownership. His shareholdings are categorized into direct and indirect ownership structures, distributed as follows:
Direct shareholding: 195,124,581 shares
Indirect shareholding via three entities:
HH Capital Limited – 302,296,875 shares
Heirs Holdings Limited – 1,814,003,900 shares
Heirs Alliance Limited – 231,086,468 shares
With these substantial holdings, Elumelu stands as one of the biggest beneficiaries of UBA’s financial success, securing one of the highest individual dividend earnings from the bank’s latest financial results.
UBA declares record-breaking dividend payout
UBA recently announced an unprecedented total dividend payout of N5.00 per share, a notable increase compared to previous years. This dividend comprises a final payout of N3.00 per share and an interim dividend of N2.00 per share. The overall payout ratio has now surged to 26.6%, a significant improvement from the 16.32% recorded in 2023.
As a result, the bank’s total dividend distribution to shareholders has skyrocketed to N147.05 billion, a remarkable leap from N47.88 billion in the previous year. However, shareholders will be subject to a 10% withholding tax on their dividend earnings, in accordance with regulatory tax policies.
UBA’s outstanding financial performance drives growth
The increased dividend payout is a direct reflection of UBA’s impressive financial performance over the past year. The bank reported a pre-tax profit of N803.7 billion, marking a 6% increase from the N757.6 billion recorded in 2023. Additionally, the bank’s after-tax profit experienced an even higher growth rate of 26.14%, soaring to N766.5 billion— the highest annual profit in UBA’s history.
UBA’s strong financial results reaffirm its position as one of Nigeria’s leading financial institutions, known for its stability, profitability, and commitment to delivering value to shareholders. With sustained earnings growth and increasing dividend payouts, the bank continues to demonstrate its dominance in the financial sector while solidifying investor confidence.
Industry analysts have attributed UBA’s continued success to its strategic investments, expansion initiatives, and robust risk management framework, which have enabled the bank to navigate economic challenges while maintaining a strong financial position. The latest dividend declaration further underscores the bank’s dedication to rewarding shareholders and reinforcing its long-term growth trajectory.
With Tony Elumelu’s substantial dividend earnings and UBA’s impressive financial outlook, the bank remains on a trajectory of sustained profitability, market leadership, and
shareholder value creation.