Shareholders Laud Zenith Bank’s Dividend Policy After N195.7bn Payout

At its 34th Annual General Meeting (AGM) on Tuesday in Lagos, shareholders said they were satisfied with the dividend policy of the financial institution.

Business Post reports that yesterday, shareholders approved the payment of N4.00 per share as final dividend, bringing the total cash reward for the year to N5.00, after paying an interim dividend of N1.00 in September 2024.

One of the shareholders at the gathering, Mr Olatunde Okelana, who is the Balogun Olugbon of Orile-Igbon, Oyo State, said his investment in Zenith Bank has been “the best for me.”

“I want to believe that whoever has not invested in Zenith Bank has lost. Their dividend policy is very palatable, very beautiful in the banking industry and the lady at the helm of affairs is performing wonderfully well. She is one of the best female CEOs in the banking Industry in Nigeria.

“I am a capitalist, so I invest where my money can give me beautiful returns. I want to tell you that Zenith Bank has been the best in the capital market and it is the best investment. Mr Jim Ovia, the founder and chairman, is a benefit to mankind; he has done the best by giving us Zenith Bank,” he added.

Mr Okelana added that, “99.9 per cent of my savings is in Zenith Bank because I have confidence in them and in the management led by Ms Adaora Umeoji. I want to encourage many Nigerians to invest in Zenith Bank so that they too can reap the fruit of their labor as soon as possible. I am very happy to be a shareholder of this bank.”

Also speaking, the president of the Shareholders Solidarity Association of Nigeria, Mr Timothy Adesiyan, praised the Zenith Bank team for their consistent delivery of value to shareholders.

“The dividend we received this year of N5 has been a promise which they have given to us at several forums which they have called at different times, and we thank them for not failing us in their promise.

“I am very proud to be a shareholder of Zenith Bank, and also their customer. The bank is a very reliable bank – if you keep your investments in Zenith Bank, you can go to sleep because there is always somebody there watching your investment for you,” he stated.

In the same vein, the president of the Association of the Rights of Nigerian Shareholders (AARNS), Mr Faruk Umar, applauded the Ms Umeoji for her efforts in ensuring the growth of the bank’s financial indices.

“We are very happy that the bank is paying us N5. Most importantly, Ms Umeoji has done so well. In the past year, she won the award for the Banker of the Year which is very commendable, and all the bank’s indices have gone up; we are now experiencing trillions in profit against N676 billion the previous year, and the shareholder’s funds, the gross earnings – everything now is in trillions. I think this is very commendable.

Also, the chairman of the Trusted Shareholders Association of Nigeria,Mr Mukhtar Mukhtar, said, “The consistency of Zenith Bank dividend payout has never been matched in Nigeria.

“Since the inception of this bank, they have kept giving shareholders a consistent dividend payout, and this has made shareholders to be richer, happier, and more excited at the hardwork, performance and commitment of the bank. We are very happy.

“If you look at the Profit Before Tax (PBT) and the Profit After Tax (PAT), they have been able to cross the N1 trillion threshold. They have given us a PBT of N1.3 trillion, which is very commendable,” he stated.

In his address to shareholders, Mr Jim Ovia thanked them for their unflinching support and commitment, which have been responsible for the bank’s stellar performance over the years.

He noted that despite challenges globally in 2024, Zenith Bank was able to leverage the opportunities within the environment of each subsidiary to record a performance that solidly attests to the bank’s resilience as a brand.

On her part, Ms Umeoji said, “This is the first time that I am addressing the AGM in my capacity as the first female chief executive of Zenith Bank. I would like to thank you for your confidence and support that has placed me in this position today.

“Zenith Bank is committed to, not only meeting your expectations, but exceeding them. We are focused on running a very efficient and sustainable institution that is resilient and will ensure that our institution outlives many generations to come.”

“If you look at our dividends trajectory, payments over the period have always increased and we will continue to maintain this record. We have successfully completed our recapitalization exercise, achieving 160 per cent subscription.

“Therefore, we are not under any pressure to go back for the second time to raise funds. Zenith Bank has sufficient capital buffer to do business and we will continue to delight our shareholders. We are committed to growing our topline organically while adhering to our strict corporate governance culture,” she added.

Last year, Zenith Bank grew its gross earnings by 86 per cent to N3.97 trillion from N2.13 trillion due to a 138 per cent leap in interest income, supported by investment in high-yield government securities, and growth in the bank’s loan book.