Following the total value of N97.33 billion dividend paid by Zenith Bank Plc to its numerous shareholders, a shareholder activist, Alhaji Olatokunbo Gbadebo has commended the management of the bank, adding that the bank has remained focused on its established mission and vision.
According to him, Zenith Bank has been and shall continue to be the delight of investors, due to its very strong foundation, proactiveness and sound policies.
Speaking further he said the values and tradition of the bank is the pathfinder’s strength and movements.
He said, “Right from inception till date, Zenith Bank has to remain focused on their core values, tradition, mission and vision; while proactiveness is their watchdog and at the same time following the master-plan with doggedness.
“You must be absorbed into the mission, vision, values, tradition of the bank before you could be considered to the lead the bank and it had remained so since inception; while the steadfastness has been the brain behind the ever continuing growth and progress of the bank, which makes the bank the darling of her shareholders
Zenith Bank, last week in Lagos held its 31st Annual General Meeting (AGM), where shareholders of the bank unanimously approved the proposed final dividend payment of N2.80 per share which brings the total dividend for the 2021 financial year to N3.10 per share with a total value of NGN97.33 billion.
In his statement, Founder / Chairman of Zenith Bank Plc, Mr. Jim Ovia, thanked the shareholders for their unflinching loyalty, which has enabled the bank to rise to the pinnacle of the nation’s financial services industry and assured them of the bank’s commitment to consistently deliver superior value to them.
Speaking on the bank’s performance, the Group Managing Director/Chief Executive, Mr. Ebenezer Onyeagwu, said: “if you look at the bank’s history over the years, Zenith Bank has always grown, and even within the pandemic, we have maintained a reasonable positive growth trajectory. Growth is coming from the fact that we are deploying our digital capability to grow more businesses, simplify our service processes, make our processes more efficient, and deal with customers’ complaints.
“Apart from developing new products, we are discovering new business verticals, especially within the retail segment, which have significant revenue. Meeting the expectation of shareholders means we have to work harder. The team is dogged, hardworking, resilient, and above all, we have a very supportive board that comes with superior guidance,” he said.
Commenting on the dividend payout, the Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, expressed the delight of shareholders over the consistent payment of dividends by Zenith Bank, noting that the bank’s shares remain the toast of investors because the bank has never failed to pay dividends to shareholders.
Also speaking on behalf of shareholders, the President of the Association of the Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said: “The bank is doing very well. All the ratios and indices have gone up. And more importantly, while we were in the meeting, I got my alert of the credit of my dividend. This is very commendable.
“The leadership of the bank has been very effective; we thank Jim Ovia for the leadership he has been giving, he has increased the dividend in spite of the economic hardship in the country, and I believe the GMD is doing very well. I commend the management and staff of the bank, including the board, and I am very confident that this year would also be very good for the bank,” he said.
Dr Faruk Umar also commended the Group Managing Director for the numerous awards the bank received in 2021, especially the sustainability awards.
In spite of a challenging macroeconomic environment aggravated by the COVID-19 pandemic, the Zenith Bank Group achieved year-on-year (YoY) growth in gross earnings of 10per cent from N696.5 billion reported in the previous year to N765.6billion. This was on the back of a 23per cent YoY growth in non-interest income from N251.7billion to N309billion and a 2per cent YoY growth in interest income from N420.8billion to N427.6billion.
Profit before tax also grew by 10per cent, from N255.9 billion to N280.4 billion in the current year. The increase was due to growth in the top-line and very strong management of the treasury portfolio that increased efficiency, resulting in a drop in interest expense by 12per cent from N121.1 billion in 2020 to N106.8 billion in the current year.
This further led to a 7per cent increase in net interest income of N320.8 billion in 2021 from N299.7 billion in 2020.
Zenith Bank customer deposits increased by 21per cent, growing from N5.34 trillion in the previous year to N6.47 trillion in the current year.
The growth in customer deposits came from both corporate and retail customers. Retail deposits grew by N146 billion from N1.72 trillion in 2020 to N1.87 trillion in 2021.
The Group’s continuous drive for retail deposits combined with the strategic rebalancing of its funding base helped to reduce the cost of funding from 2.1per cent to 1.5per cent in the current year.
Although operating expenses grew by 13per cent YoY, growth remains below the inflation rate, and the Group improved its Earnings per Share (EPS) which grew by 6per cent from N7.34 to N7.78.
Total assets increased by 11per cent, growing from N8.48 trillion in 2020 to N9.45 trillion in 2021, mainly driven by growth in customer deposits.
With the steady recovery in economic activities, the Group prudently grew its gross loans by 20per cent, from N2.9 trillion in 2020 to N3.5 trillion in 2021, with moderated NPL ratio from 4.29per cent to 4.19per cent YoY.
The Group recorded impressive liquidity and capital adequacy ratios of 71.6per cent and 21.0per cent, which remained above regulatory thresholds of 30per cent and 15per cent, respectively.
