Zenith Bank’s N3.20k dividend brings total shareholders returns to N100.47bn in 2022
By Business a.m. Reporter
Shareholders of Nigeria’s Tier-1 bank, Zenith Bank Plc, saw total per share dividend returns on their investments in the bank come to N3.20 after they approved a final payment of N2.90 per share as dividend last Wednesday at the 32nd annual general meeting (AGM) held virtually from Lagos.
The bank had earlier paid an interim dividend of 30 kobo per share, but the hefty final dividend also brought in a hefty total dividend returns for all shareholders as they participated in sharing N100.47 billion paid out by the bank last week.
Leaders of shareholders groups who spoke during the at the venue of the meeting, welcomed the performance of the bank and the dividend payment with praises heaped on the board and management for the 2022 results presented to shareholders.
Faruk Umar, president, Association of the Rights of Nigerian Shareholders (AARNS), praised the board and management of the bank for consistently delivering value to shareholders, despite the challenging economic environment, while also extending commendation to the staff for their loyalty and dedication that have contributed to the performance posted by the bank.
Timothy Adesiyan, president, Shareholders Solidarity Association of Nigeria, welcomed the dividend payout, just as he extended thanks to the board and management for the outstanding performance that led to approving both an interim and final dividend during the year.
Another shareholders leader, Adenike David, national coordinator, Esteemed Shareholders Association of Nigeria, congratulated the bank and its chairman, Jim Ovia, on the exceptional 2022 performance, which has also seen the bank winning several awards in the financial year under consideration.
She commended the bank for paying an interim dividend of 30 kobo and a final dividend of 2.90 kobo.
Chairman Ovia, presenting an opening statement to shareholders at the AGM, expressed his gratitude to the shareholders for their unwavering loyalty, commitment, and support, which have been instrumental in the bank’s outstanding performance since its inception.
Also, Ebenezer Onyeagwu, group managing director and chief executive officer, praised the founder and chairman, for establishing the legacy and providing the template for the bank’s continued superior performance.
Onyeagwu said the board and management were determined to maintain the bank’s growth trajectory in the coming years, adding that emphasis will be placed on digital and retail banking.
A statement issued by the bank at the end of the AGM noted that despite the challenging macroeconomic conditions, the banking group recorded a 24 percent growth in gross earnings, which grew from N765.6 billion in the previous year to N945.5 billion in 2022.
According to the bank, this performance was driven by a 26 percent year-over-year growth in interest income and a 23 percent year-over-year growth in non-interest income. It noted that customer deposits grew by 39 percent, reflecting the bank’s market leadership and customers’ trust.
The group’s net-interest-margin (NIM) rose from 6.7 percent to 7.2 percent, positively impacted by the elevated yield environment. Operating expenses grew by 17 percent year-over-year, though still below the inflation rate. Total assets rose by 30 percent, primarily due to growth in customer deposits.
The statement further disclosed that this year 2023, the banking group plans to expand its reach and reorganise into a holding company structure, “adding new verticals to its businesses and pursuing growth in all chosen markets, locally and internationally.” the statement read.
Zenith Bank’s track record of excellent performances has continued to earn the brand numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine, among others.