Zenith Bank surpasses 2015 profit records

…Gets shareholders’ approval to raise fresh N100bn capital

By Odunewu Segun

Zenith Bank has declared a profit after tax of N129.65bn for the financial year ended December 31, 2016 as against the N105.66bn posted in the preceding period of 2015.

The profit represented an increase of 22.7 percent when compared to figures for 2015.

Its profit before tax stood at N156.75 against the N125.63bn declared in the preceding period of 2015. The bank’ gross earnings grew by 17.4 per cent to N507. 99bn compared to N432.54bn recorded in 2015.

Its non-interest income increased by 45.9 percent to N25.59bn due to an 809 percent increase in foreign exchange revaluation gains of N25.6bn. This, however, declined by 10 percent from the N8.2bn reported in nine months of 2016.

The impairment loss on financial assets rose significantly by 106.4 per cent to N32.35bn in 2016 and 34.6 percent based on quarter-on-quarter to N10.2bn in the fourth quarter of 2016.

The board of directors declared a final dividend of N1.77 per share to all its investors against a final dividend of N1.55 per share paid in 2015 and interim dividend of 25k.

The bank had earlier in 2016, paid the sum of 25k as interim dividend, bringing the total dividend in 2016 to N2.02 per share against N1.80 per share declared in 2015.

Meanwhile Shareholders of the Bank at the Bank’s 26^th Annual General Meeting on Wednesday authorized the board and management to raise additional capital of N100bn by way of a public offering rights issue or any other method deemed fit by the board in local or international market or the combination of both.

They also authorised that the bank’s share capital be increased to N25bn comprising N20bn by the creation of additional 10 billion ordinary shares of 50k each.

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Speaking at the meeting, Mr. Sunny Nwosu, founder, Independent Shareholders Association of Nigeria, commended the bank for the improved performance and final dividend of N1.77 per share in spite of unfriendly operating environment.

Nwosu said that the bank needed to map out strategies aimed at bringing operating expenses to reduce operating cost.

He said that the management must put machinery in place to ensure all loans were recovered.

Mr Nona Awo, a shareholder, said that the bank needed to drive down its unclaimed dividend figure of N3bn as at Dec. 31, 2016. He said that the bank should increase deposit drive by extending tentacles across the country, especially to unbanked areas.

Mr Peter Amangbo, the bank’s Group Managing Director, said that the bank was working closely with registrars to bring down the unclaimed dividend figure. Amangbo assured the shareholders that the bank would continue to work hard to grow deposit base.

He stated that the company’s focus was on ways to satisfy its esteemed customers with efficient and effective service delivery mechanism.