Zenith Bank declares N5 dividend for 2024 as shareholders approve N195.67bn payout
Onome Amuge
Zenith Bank Plc shareholders have approved a final dividend payment of N4.00 per share at the bank’s 34th Annual General Meeting (AGM) held recently in Lagos. This brings the total dividend for the 2024 financial year to N5.00 per share, amounting to a total payout of N195.67 billion.
Jim Ovia, the founder and chairman of Zenith Bank Plc, expressed his gratitude to shareholders for their unwavering support, which he credited as a key factor in the bank’s consistent strong performance. He acknowledged the global challenges of 2024 but highlighted Zenith Bank’s ability to capitalise on opportunities within its various subsidiaries, demonstrating the brand’s resilience.
Adaora Umeoji, the group managing director/chief executive officer, addressing shareholders for the first time in her new role, also thanked them for their confidence and support. She pledged a quantum leap in dividends going forward, stating, “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.”
Umeoji addressed the dividend trajectory, noting the consistent increase in payments over time and assuring shareholders of the bank’s commitment to maintaining this record. She also highlighted the successful completion of the bank’s recapitalisation exercise, achieving a 160 per cent subscription rate, indicating a strong capital buffer for future business operations.
Shareholder representatives lauded the bank’s performance and the dividend payout. Faruk Umar, president of the Association of the Rights of Nigerian Shareholders (AARNS), commended the GMD/CEO for her role in driving the growth of the bank’s financial indices, noting the increase in profit to trillions of naira compared to the previous year’s N676 billion. He also noted the bank’s numerous awards and its successful oversubscription of the Central Bank of Nigeria’s recapitalisation threshold.
Mukhtar Mukhtar, chairman of the Trusted Shareholders Association of Nigeria, praised Zenith Bank’s consistent dividend payout history, which he said has enriched shareholders. He expressed satisfaction with the bank’s Profit Before Tax (PBT) exceeding N1 trillion, reaching N1.3 trillion.
Olatunde Okelana, a shareholder, described his investment in Zenith Bank as the best, praising the bank’s dividend policy and the performance of the CEO. He encouraged other Nigerians to invest in the bank to benefit from its returns.
Timothy Adesiyan, president of the Shareholders Solidarity Association of Nigeria, commended the Chairman and Management for consistently delivering value to shareholders, noting that the N5 dividend for the year was a fulfilled promise.
The bank’s strong financial performance in 2024 underpinned the increased dividend. Zenith Bank Group reported an 86 per cent surge in gross earnings to N3.97 trillion, up from NGN2.13 trillion in the previous year. This growth was driven by a 138 per cent increase in interest income, supported by investments in high-yield government securities and expansion of its loan portfolio. Customer deposits also saw significant growth of 45 per cent, reflecting market leadership and customer trust, while total assets rose by 47 per cent due to a strong liquidity position and effective balance sheet management.