Nigeria’s Tier 1 lender Zenith Bank to pay shareholders N94.19 billion dividend for 2020

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Tier 1 lender Zenith Bank Plc is on course to pay shareholders N94.19 billion total dividend (translating to N3 dividend per share) for the 2020 financial year after getting stockholders’ nod for cumulative final dividend payout of N84.77 billion (translating to N2.70 dividend per share) on Tuesday.

Zenith Bank had earlier last year rewarded shareholders with an interim dividend of N0.30 per share, summing up to N9.42 billion.

The lender paid N2.80 as total dividend per share for the penultimate year, meaning its dividend for 2020 was a 7.14 per cent leap over the figure for the year before.

“Despite a challenging macroeconomic environment exacerbated by the COVID 19 pandemic, the group’s gross earnings rose by 5 per cent to N696.5 billion from N662.3 billion reported in the previous year, with an 8 per cent growth in non-interest income from NGN232.1 billion in 2019 to NGN251.7 billion in 2020 and a 1 per cent increase in interest income from NGN415.6 billion in 2019 to NGN420.8 billion in 2020,” it said in a press statement

Zenith Bank’s profit for the year advanced 10.4 per cent to N230.57 billion from N208.84 billion, according to its audited earnings report.

In the period under review, total deposit grew by a quarter to N5.34 trillion, while total assets scaled up by 34% from N6.35 trillion to N8.48 trillion.

The N3 per share dividend declared for 2020 implies Jim Ovia, the bank’s chair and principal shareholder, will receive N15.216 billion for his 11.29 per cent holding equivalent to 3.546 billion shares in the lender.

Shares in Zenith Bank was traded in Lagos at 12:03 West African Time on Wednesday at N20.4 per share, up by 0.49 per cent.