Zenith Bank has approved the proposed final dividend of N2.50k per share, bringing the total dividend payment for the 2019 financial year to N2.80k per share with a total value of N87.9 billion.
The decision was taken at the 29th annual general meeting of the bank’s shareholders held in Abuja yesterday.
It came in the wake of the recent release of the Bank’s audited financial results for the 2019 financial year.
Speaking at the meeting, the chairman of the board, Mr. Jim Ovia said the bank dimmed it necessary to engage its shareholders on the 2019 financial year performance.
“Zenith Bank is committed to consistently deliver superior returns to our highly esteemed shareholders by ensuring that a good chunk of our profit is set aside for you.
“In a clear demonstration of this, we had declared and paid you an interim dividend of 30kobo per share in the course of the 2019 financial year.
“We hereby propose a final dividend of N2.50k per share. If approved, this will bring the total dividend for the year ended December 31, 2019, to N2.80k per share,” he said.
The approval of the dividend payout followed the recent release of the bank’s audited financial results for the 2019 financial year.
According to the report, the bank posted profit before tax of N243 billion in 2019 financial year, representing a 5 per cent increase over the N231.6bn recorded in the corresponding period of 2018.
Profit after tax stood at N208.8 billion over N193 billion, an increase of 8 per cent, thus making Zenith Bank the first Nigerian bank to cross the N200 billion mark.
The bank’s result also showed an increase in gross earnings from N662 billion to N630 billion, indicating dominance in market share, while its assets grew by 5 per cent from the N5.9 trillion to N6.3 trillion, a growth driven by the 29 per cent increase in non-interest income from N179.9 billion in 2018 to N231.1 billion in 2019.
The bank’s fees on electronic products continued to grow significantly with a 108 per cent year-on-year from N20.4 billion in 2018 to N42.5 billion in 2019.
The Zenith Group also created new viable risk assets as gross loans grew by 22 per cent from N2.016 trillion to N2.462 trillion.
This was executed prudently at a low cost of risk of 1.1 per cent and a significant reduction in the non-performing loan ratio from 4.98 per cent to 4.30 per cent.
Prudential ratios such as liquidity and capital adequacy ratios also remained above regulatory thresholds at 57.3 per cent and 22.0 per cent respectively.
