As Nigeria’s banking sector closes the books on 2025, investors are shifting focus from stock price growth to dividend payouts in the upcoming March 2026 season.
The year saw some big moves:
-Zenith Bank recorded a massive ₦781 billion impairment, which may limit its dividend payout.
-UBA experienced strong earnings growth, especially from its African subsidiaries earning in foreign currencies.
Based on current projections, GTCO and UBA are set to be the top dividend-paying banks:
GTCO (Guaranty Trust Holding Company)
-Known for efficiency and safety.
-Low risk from non-performing loans keeps the stock price high.
-Dividend yield expected around 9.05%, making it a reliable choice for income-focused investors.
UBA (United Bank for Africa)
-Earnings boosted by foreign currency profits.
-Even after a 23.5% rally in 2025, its stock still offers a high dividend yield near 7.7%.
Other banks:
-Zenith Bank, historically Nigeria’s “dividend king,” may reduce payouts due to the large impairment and focus on rebuilding capital.
-Access Holdings recently needed a ₦40 billion capital raise, making its dividend for 2025 uncertain.
-First HoldCo has a low dividend yield of 1.13%, less attractive for income-seeking investors.
Why this matters to you:
-Investors looking for steady income should consider dividend yields, not just stock price growth.
-GTCO offers a safe, reliable payout, while UBA gives a high yield backed by foreign earnings.
-Banks with capital issues or big impairments may offer lower dividends, affecting potential returns for shareholders.
