Business

Zenith Bank’s profit after tax increases by 7.6 per cent, now N208bn

Zenith Bank Plc has annouced a profit after tax of N208 billion for its 2019 financial year.

The figure represents about 7.6 per cent increase compared to the N165 billion recorded in 2018.

Chairman of Zenith Bank, Jim Ovia, told shareholders at its 29th Annual General Meeting, in Abuja, that the bank’s performance was exceptional, adding that it was an indication that the bank was a clear leader in the industry.

The bank’s gross earnings grew by five per cent from N538 billion in 2018 to N565 billion in 2019. Its total assets during the period under review grew by 9.7 per cent from N4.96 trillion to N5.44 trillion; while shareholders’ fund rose by 15.4 per cent from N675 billion to N779 billion.

Shareholders went home with a N2.8 per share dividend.

Ovia said: “The year 2019 was a very challenging year for operators in the Nigerian banking industry because of several factors in the global and domestic environment.

‘’Notwithstanding the challenges, we were able to leverage the inherent opportunities within the business environment and record a performance which further attests to our resilience as a brand”.

“The result is a manifestation of the remarkable financial health of the bank and the group. The shareholders have every cause to be happy because of the bounty rewards we are giving to them.

“On the whole, we are giving them a dividend of N 2.80 Kobo which translates to a dividend yield of over 14 per cent. And when you look at it vis-à-vis the current share price, you are looking at a dividend of 15 per cent per annum.

“We have also assured the shareholders that no matter the challenges operating in the external environment, the bank will continue to be efficiently managed; we will create value and we won’t be reckless because we want to comply with a loan to deposit ratio.

”We will also continue to remain ethical and focused, so shareholders have reasons to be happy.”

The Group Managing Director of Zenith Bank, Mr Ebenezer Onyeagu, described the N2.8 dividend as a “bounty” and that the shareholders were very pleased with the board and management of the organization.

He said: “The shareholders have every cause to be happy because of the bounty rewards we are giving to them.

“On the whole, we are giving them dividends of N2.80 per share, which translate to a dividend yield of over 14 per cent. And when you look at it vis-à-vis the current share price, you are looking at a dividend of 15 per cent per annum.

“We have also assured the shareholders that no matter the challenges in the operating environment, the bank will continue to be efficiently managed, we will create value and we won’t be reckless because we want to comply with the regulation on the Loan/Deposit ratio.

“We will also continue to remain ethical and focused, so shareholders have reasons to be happy.”

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