Tony Elumelu To Earn N1.24 bn In Dividend for FY 2020

The Chairman of United Bank for Africa, Mr Tony Elumelu is expected to earn the sum of N1.24 billion in dividend for the financial year ended December 2020.

The astute banker cum philanthropist, who owns 194,699,555 direct shares, also owns about 2,185,394,184 indirect stakes through three other companies – Heirs Holdings, Heirs Alliance and HH Capital Limited.

This puts his total equity holdings at 2,380,603,739 out of the 34,199,421,368 ordinary shares available, giving him a collective 6.96% interest in the bank.

On Monday 8 March, the Board of Directors of the bank proposed a final dividend of N0.35 per share; this is in addition to an interim dividend of N0.17 per share already disbursed.

This takes the total dividend for the year to N0.53 per share.

The proposal is sequel to an impressive financial performance posted by the financial giant amid a turbulent economy plagued by the COVID-19 pandemic.

The recent performance might be an indicator that the bank is well-positioned to replicate greater success this term.

Computation of the declared dividend per share and the number of shares (Direct+ Indirect) owned by Elumelu reveals he will receive a gross dividend of about N1,237,913,944.28 for FY 2020, subject to applicable Withholding Tax.

Elumelu was named in TIME 100 most influential people in the world in 2020, and he is well known for his business acumen, astuteness and philanthropy, part of which led to his establishment of the Tony Elumelu Foundation in 2010.

UBA had earlier released its audited FY 2020 results showing a profit after tax of N113.77 billion. (+27.7% YoY)

Sequel to an earlier retirement in 2010, Elumelu returned to the Board of UBA as chairman in 2014.

The proposed dividend will be approved by shareholders of the bank at an AGM scheduled for April 1, 2021.