Zenith Bank Valuation Rises after Record Breaking Dividend Payment

Zenith Bank Valuation Rises after Record Breaking Dividend Payment

Zenith Bank Plc’s share price gained about 7% after the group raised the bar with its skyrocketed dividend payment to shareholders following approval at its annual general meeting.

At its annual general meeting, shareholders approved the proposed final dividend payment of N2.90 per share, bringing the total dividend for the financial year 2022 to N3.20 per share.

With over 31.396 billion shares outstanding, Zenith Bank doled out a total sum of N100.47 billion as dividend payment for the year. The bank’s share price moved positively, thus pushing the lender’s valuation back to its first position.

Data from the stock market show that Zenith Bank’s market valuation inched higher by 6.65% in the last seven trading sessions to N755.085 billion.

A slew of equity analysts in Broadstreet is strongly bullish on the Tier-1 bank with strong earnings and dividend payment with near zero boardroom drama.

Speaking at the AGM, Jim Ovia, CFR, Founder and Chairman of Zenith Bank Plc, expressed 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, Group Managing Director/Chief Executive, Dr Ebenezer Onyeagwu, extolled the Founder and Chairman, Jim Ovia, CFR, for establishing the legacy and providing the template for the bank’s continued superior performance.

Zenith Bank GMD also highlighted the Board and Management’s determination to maintain the bank’s growth trajectory in the coming years, with an emphasis on digital and retail banking.

In his commentary, Dr Faruk Umar, President of the Association of the Rights of Nigerian Shareholders (AARNS), commended the Board and Management of Zenith Bank for consistently delivering value to shareholders, despite the challenging economic environment. He also praised the bank’s staff for their loyalty and dedication.

Chief Timothy Adesiyan, President, Shareholders Solidarity Association of Nigeria, expressed delight at the dividend payout and thanked the Board and Management for the outstanding performance that led to approving both an interim and final dividend during the year.

Also speaking, Mrs. Adenike David, National Coordinator of the Esteemed Shareholders Association of Nigeria, congratulated the bank and Chairman on their exceptional performance, as evidenced by the numerous awards received during the 2022 financial year. She also praised the bank for paying an interim dividend of 30 kobo and a final dividend of 2.90 kobo.

Despite challenging macroeconomic conditions, Zenith Bank Group achieved a 24% growth in gross earnings, from N765.6 billion in the previous year to N945.5 billion in 2022.

This was driven by a 26%-year growth in interest income and a 23% growth in non-interest income. Customer deposits grew by 39%, reflecting the bank’s market leadership and customers’ trust.

Zenith Bank’s net interest margin increased from 6.7% to 7.2%, positively impacted by the elevated yield environment. Operating expenses grew by 17%, though still below the inflation rate.

The financial services behemoth maintains strong asset quality despite pressures in its major market. Details from its financial statement show that total assets rose by 30%, primarily due to growth in customer deposits.

In 2023, Zenith Bank 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.

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.  #Zenith Bank Valuation Rises after Record Breaking Dividend Payment#

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