Investors are taking positions in major banking stocks ahead of this month’s release of the audited half-year results and interim dividends of major banks.

Nigeria’s tier-1 banks, including Guaranty Trust Holding Company (GTCO) Plc, Zenith Bank Plc, Access Holdings Plc, United Bank for Africa (UBA), Stanbic IBTC Holding Plc and Fidelity Bank Plc have established a regular pattern of paying dividends twice a year, with interim dividend usually declared on the half-year report.

The major banks, also known as systemically important banks, control about three-quarters of the banking industry funds and have significant influence on the stock market, where banks are the most actively traded stocks.

Regulatory filings reviewed yesterday showed that nearly all the major banks have indicated they would be paying interim dividends on their six-month results, which are currently undergoing review by the Central Bank of Nigeria (CBN). The results, alongside the interim dividends, are expected to be released over the next three weeks.

Most analysts said they expected the release of interim dividends by the major banks to influence activities at the stock market in the period ahead.

Managing Director, GTI Capital Limited, Mr. Kehinde Hassan, said the expectations of interim dividends were major factors influencing market behaviours.

“Speculative trading may intensify as investors position themselves ahead of potential announcements, making September a potentially dynamic month for banking equities on the Nigerian capital market,” Hassan, a multi-asset chartered stockbroker and accountant said.

He explained that following the Central Bank of Nigeria’s restriction on interim dividend declarations by banks under the forbearance regime, most affected institutions had taken proactive steps to restructure their balance sheets and reassure the investing public of their intent to exit the forbearance framework by the half-year ended June 30, 2025.

According to him, the restructuring opened the door for eligible banks to declare interim dividends, although a few could remain under regulatory constraints beyond this period.

He said: “As a result, investor sentiment is tilting strongly toward banks not under forbearance, with heightened anticipation of dividend payouts. These dividend-eligible stocks are likely to attract increased demand, driving price appreciation and higher trading volumes.

“Conversely, banks still restricted from declaring dividends may experience waning investor interest, prompting dividend-focused investors to reallocate capital toward more promising alternatives within the sector”.

Most banks have already submitted their half-year financials and are awaiting regulatory approval for dividend declarations.

However, the uncertainty surrounding CBN’s final stance could introduce short-term volatility in share prices.

The board of Zenith Bank stated that it had considered interim dividend payment alongside the approval of the bank’s six-month results.

The Tony Elumelu-led board of United Bank for Africa (UBA) said it had “approved an interim dividend” for the half-year period, subject to the approval of the CBN.

Directors of Stanbic IBTC Holdings said they had decided to audit the half-year results of the group, one of the preconditions for declaration of interim payout.

Access Holdings stated that the audited group financial statements for the six-month period ended June 30, 2025 approved by its board included “the payment of an interim dividend”, which would be announced upon approval by the CBN.

Under a three-step final process for the release of half-year results and interim dividend recommendations, the board of directors meets to consider and approve the audited financial statements as well as dividend recommendation.

The board-approved reports are then transmitted to the primary regulator, in the case of financial institutions and other regulated entities. With the receipt of the approval of the primary regulator, the results and dividend recommendations are finally transmitted to the Securities and Exchange Commission (SEC) and the Nigerian Exchange (NGX) for onward release to the investing public.

Post-listing rules at the NGX require quoted companies to submit interim or unaudited quarterly report not later than 30 calendar days after the end of the relevant period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.

However, where a company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter. All the leading banks also undertake audit of their half-year accounts. While the deadline for the submission of their accounts was Friday, August 29, 2025, the banks had secured regulatory waiver to extend submission till the end of September 2025.

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