Shareholders’ endorse Zenith Bank’s N57b dividend

To enhance value on investment through dividend payout, shareholders’ of Zenith Bank Plc, yesterday commended the company’s board for its performance last year, even as they approved a dividend of N56.51 billion, culminating to N2.20 kobo per share due to every investor of the bank for the 2016 financial year.

The bank had earlier paid an interim dividend of 25 kobo and a final dividend of N1.77 kobo. Speaking at the Bank’s 26th yearly general meeting held in Lagos yesterday, the shareholders also urged the board to increase the contribution of its savings to deposit.

Specifically, the Former National Coordinator, Independence Shareholders Association of Nigeria, Sir Sunny Nwosu, expressed satisfaction with the state of affairs in the bank especially for sustaining its profitability amid harsh operating environment.

Nwosu berated the Central Bank of Nigeria (CBN), especially the Asset Management Company of Nigeria (AMCON), for its reforms programmes, which he said, failed to take cognizance of the plight of shareholders and the harsh economic situation in the country. Nwosu noted that AMCON had sold a lot of assets without making the proceeds known to the public.

He urged Zenith Bank to continue to stay ahead of trends in the industry, especially in the areas of the Federal Government Savings Bond, to ensure that they make Treasury Bills attractive to small savers.

An independent shareholder, Nona Awoh, stressed the need for the Bank to ensure that its subsidiaries, especially those in Africa, increased their savings contributions to deposit.

He also urged the investors’ relations department of the Bank to work with the Registrars, to reduce the high rate of unclaimed dividend to the barest minimum.
Reviewing its performance, the Chairman of Zenith Bank, Jim Ovia, noted that owing to a number of domestic and external factors, 2016 was a challenging year for operators in the banking industry.

He however added the bank fully exploited the opportunities within the environment to translate into an excellent performance that stands as a testimony to the durability and resilience of the brand.

The Group Managing Director, Peter Amangbo, said: “From the financials, the Bank recorded a significant increase across all income parameters. Our profit before tax gained 25 per cent from N125.6 billion in 2015 to N156.7 billion in 2016.

“The group declared a final dividend of N1.77 kobo per share which in addition to the 25 kobo per share paid as interim dividend.”

He continued:  “As a Bank, we have always conservative and professional when it comes how we run our business. Banking is a very risky business and we very mindful of impairment. We take absolute care in granting loans. If you look at our Non-Performing Loan to total Loans, it is about one of the best in the industry at 3.1 per cent.