Zenith Bank Earn Shareholders’ Praise Over Dividend Payout

Zenith Bank Plc’s shareholders have lauded the bank for its dividend payout after the Tier-1 lender declared a final dividend of 280 kobo for FY 2018.

Zenith Bank, in February, proposed an interim dividend of 30 kobo per share. The announcement of additional dividend of 250 kobo per share brought the total dividend for the year to 280 Kobo.

This is more than the total dividend of 270 Kobo per share paid in 2017 and shareholders considered were excited by the improvement.

But during the bank’s 28th Annual General Meeting (AGM) held on March 18, the shareholders said while pleased with the dividend payout, they however want to be more involved in the activities of the bank.

Abraham Onyema, a shareholder, said the dividend offered to them is reasonable. “I think the dividend is reasonable. The bank made a profit of N6 plus per share and they offered us N2.80k. I think it’s reasonable. I’m okay with the (financial) performance. The bank is a pacesetter and I can say Zenith Bank is the number one bank in Nigeria in terms of its performance and dividend payout. This is the bank that pays the highest dividend this year.”

In his contribution, Lawrence Ogidi, another shareholder, said the involvement of shareholders should go beyond the AGM.

He also tasked the management to improve on its performance rather than relent on it. “I think the bank should get the shareholders more involved in the activities of the organisation, not just when it’s time for the AGM. The bank should carry us along right from the onset. Let us know what is actually happening right inside the bank because without the shareholders, the bank cannot stand.”

Just like the bank’s shareholders, the Chairman of Zenith Bank, Jim Ovia was ecstatic about the financial result the tier-one bank pulled in 2018.

He said with the global and domestic factors that affected the growth of businesses in the financial sector, Zenith Bank continued with its impressive track record. The growth in the bank’s finances was linked to the ability of Zenith Bank to fully exploit the opportunities within the banking sector environment.

“Clearly, the results are, once again, a reflection of the exceptional financial health of the bank and the group,” he said.

In the financial result breakdown, Zenith Bank recorded total deposits of N3.69 trillion for the year ended December 31, 2018. This represented a 7 per cent increase over the previous year’s figure of N3.43 trillion. The bank’s profit-before-tax rose by 16 per cent, from N199 billion in 2017 to N231 billion in 2018. Its Profit-After-Tax was N193 billion in 2018, increasing by 11 per cent, from N173 billion in 2017.

Meanwhile, the Total Assets of Zenith Bank was said to have grown by 6 per cent from N5.59 trillion to N5.95 trillion. The Shareholders’ fund increased by 0.5 per cent, from N812 billion to N816 billion. The Gross Earnings declined by 15.4 per cent from N745 billion in 2017 to N630 billion in 2018.