Zenith Bank Plc Approves N125 Billion Dividend to Shareholders in 2023 FY

Zenith Bank Plc shareholders on Wednesday finally approved the N125bn dividend proposed by the Bank's board of directors. This approval took place at the firm's 33rd Annual General Meeting at the Civic Centre Victoria Island, Lagos.

The Bank's directors proposed a final dividend of NGN3.50 per share, bringing the total dividend for 2023 to N4 per share.

It paid N125.59bn as a dividend for the 2023 financial year, which is reported to be the highest dividend payout by any commercial bank last year.

Speaking about the bank's effort to make sure shareholders receive a good dividend, Mrs Bisi Bakare, the National Coordinator of the Pragmatic Shareholders Association of Nigeria, expressed her delight in the exceptional performance of the Bank,

She declared: "Shareholders are very pleased today to receive a final dividend of N3.50 from Zenith Bank. Following an interim dividend of 50 kobo paid last December, the total dividend for the 2023 Annual General Meeting amounts to N4.00— the highest in the banking sector to date.

"We truly appreciate this and are optimistic that transitioning to a holding company will bring even greater returns. Zenith Bank's numerous accolades this year position it as the leading Bank in the country. We anticipate that the 2024 AGM will be even more promising for Zenith, marking the first year as a holding company."

Dr Faruk Umar, the President of the Association of the Rights of Nigerian Shareholders, thanked the group's chairman for facilitating a seamless succession plan.

He stated, "The Bank has performed exceptionally well, particularly regarding succession planning. It is encouraging to see the new managing director promoted from within, reinforcing our belief in the Bank's leadership development. This internal promotion strategy motivates our staff, giving them the confidence to aspire to the highest levels within the Bank."

The founder and Chairman of Zenith Bank, Dr Jim Ovia, thanked the shareholders for their unflinching support and loyalty to the Zenith brand, which had been instrumental to its consistent superior performance.

Speaking on his forthcoming retirement, the Group Managing Director/Chief Executive Officer, Dr Ebenezer Onyeagwu, said, "As I prepare to pass the baton to Dame Adaora Umeoji, I am confident in the Bank's trajectory under her leadership. I would like to express my profound gratitude to our founder and Chairman, Dr Jim Ovia, CFR, and the board, shareholders, customers, and staff for their steadfast support throughout my tenure.

"I earnestly request that you extend the same support to my successor. It has been a remarkable journey, and I am immensely proud of what we have accomplished together. As I commence the mandatory regulatory cooling-off period, I am filled with optimism for Zenith Bank's future and assured that we are on the path to even greater success."

Zenith Bank Group's gross earnings increased by 125% to N2.13tn in 2023, from N945.6bn in the previous year. This was driven by a 112% increase in interest income and a 141% increase in non-interest income.

In 2024, Zenith Bank Group plans to expand its reach following its restructuring into a holding company structure. It will add new verticals to its businesses and pursue growth in all chosen markets, locally and internationally.