FINANCE

Zenith Bank rewards shareholders with Dividend Payout of N87.9bn at 29th AGM

&NewLine;<p>It was a session of applause and jubilation as Zenith Bank Plc&comma; on Monday&comma; March 16&comma; 2020 held its 29th Annual General Meeting &lpar;AGM&rpar; in Abuja&comma; Nigeria&comma; during which the Bank’s shareholders unanimously approved the proposed final dividend of N2&period;50 per share&comma; bringing the total dividend payment for the 2019 financial year to N2&period;80 per share with a total value of N87&period;9 billion&period; This followed the recent release of the Bank’s audited financial results for the 2019 financial year&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>According&NewLine;to the Chairman of the Board&comma; Mr Jim Ovia &lpar;CON&rpar;&comma; the AGM was an opportunity for&NewLine;the bank to engage shareholders on its 2019 financial year performance&period; In his&NewLine;statement&comma; Mr Jim Ovia said &OpenCurlyDoubleQuote;Zenith Bank is committed to consistently deliver&NewLine;superior returns to our highly esteemed shareholders by ensuring that a good&NewLine;chunk of our profit is set aside for you&period; In a clear demonstration of this&comma; we&NewLine;had declared and paid you an interim dividend of 30kobo per share in the course&NewLine;of the 2019 financial year&period; We hereby propose a final dividend of N2&period;50kobo per&NewLine;share&period; If approved&comma; this will bring the total dividend for the year ended&NewLine;December 31&comma; 2019&comma; to N2&period;80kobo per share”&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Zenith&NewLine;Bank reaffirmed its leading position in the Nigerian banking industry posting&NewLine;an impressive Profit Before Tax &lpar;PBT&rpar; of N243bn&comma; representing a 5 per cent&NewLine;increase over the N231&period;6bn recorded in the corresponding period of 2018&period; Profit&NewLine;after Tax &lpar;PAT&rpar; stood at N208&period;8bn over N193bn&comma; an increase of 8 per cent&comma; thus&NewLine;making Zenith Bank the first Nigerian bank to cross the 200billion Naira mark&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The&NewLine;bank’s result showed an increase in gross earnings from N662bn to N630bn&comma;&NewLine;indicating dominance in market share&comma; while its assets grew by 5 per cent from&NewLine;the N5&period;9 trillion to N6&period;3 trillion&comma; a growth driven by the 29&percnt; increase in&NewLine;non-interest income from N179&period;9 billion in 2018 to N231&period;1 billion in 2019&period; The&NewLine;Bank’s fees on electronic products continue to grow significantly with a 108&percnt;&NewLine;Year-on-Year &lpar;YoY&rpar; from N20&period;4 billion in 2018 to N42&period;5 billion in 2019&period; <&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The&NewLine;drive for cheaper retail deposits coupled with the low-interest yield&NewLine;environment helped reduce the cost of funding from 3&period;1&percnt; to 3&period;0&percnt;&period; However&comma; this&NewLine;also affected net interest margin&comma; which reduced from 8&period;9&percnt; to 8&period;2&percnt; in the&NewLine;current year due to re-pricing of interest-bearing assets&period; Although returns on&NewLine;equity and assets held steady YoY at 23&period;8&percnt; and 3&period;4&percnt; respectively&comma; the Group&NewLine;still delivered an improved Earnings per Share &lpar;EPS&rpar; which grew 8&percnt; from N6&period;15&NewLine;to N6&period;65 in the current year&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<figure class&equals;"wp-block-image size-large"><img src&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;wp-content&sol;uploads&sol;2020&sol;03&sol;Zenith-AGM-2-1024x672&period;jpg" alt&equals;"" class&equals;"wp-image-2617"&sol;><figcaption><br> <strong>Chairman&comma; Zenith Bank Plc&comma; Mr Jim Ovia &lpar;Centre&rpar; flanked by the Group Managing Director&sol; CEO&comma; Mr&period; Ebenezer Onyeagwu &lpar;Left&rpar; and the Deputy Managing Director&comma; Dr&period; Adaora Umeoji &lpar;Right&rpar; at the 29th Annual General Meeting&comma; Shehu Musa Yaradua Centre&comma; Abuja on Monday&comma; March 16&comma; 2020&period; <&sol;strong><&sol;figcaption><&sol;figure>&NewLine;&NewLine;&NewLine;&NewLine;<p>The&NewLine;Group created new viable risk assets as gross loans grew by 22&percnt; from N2&period;016&NewLine;trillion to N2&period;462 trillion&period; This was executed prudently at a low cost of risk&NewLine;of 1&period;1&percnt; and a significant reduction in the non-performing loan ratio from 4&period;98&percnt;&NewLine;to 4&period;30&percnt;&period; Prudential ratios such as liquidity and capital adequacy ratios also&NewLine;remained above regulatory thresholds at 57&period;3&percnt; and 22&period;0&percnt; respectively&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Financial&NewLine;analysts noted this unprecedented feat by a Nigerian Bank as remarkable&comma; and an&NewLine;indication of strong financial leadership and resilience&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>As a&NewLine;testament to this superlative performance&comma; the bank emerged as the Most Valuable&NewLine;Banking Brand in Nigeria&comma; for the third consecutive year&comma; in the recently&NewLine;released Banker Magazine &OpenCurlyDoubleQuote;Top 500 Banking Brands 2020”&comma; the Best Bank in&NewLine;Nigeria 2020 in the Global Finance World’s Best Banks Awards 2020 and the Bank&NewLine;of the Decade &lpar;People’s Choice&rpar; at the Thisday Awards 2020&period;&nbsp&semi; In addition&comma; the Bank was also voted as the&NewLine;Best Commercial Bank in Nigeria 2019 by the World Finance and the Best Digital&NewLine;Bank in Nigeria 2019 by Agusto &amp&semi; Co&period; <&sol;p>&NewLine;

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