Zenith Bank Earnings Drop 15%, Proposes N2.50k Dividend

By Dipo Olowookere

One of the top banks in Nigeria, Zenith Bank Plc, has released its annual financial report for the year ended December 31, 2018.

The Nigerian lender said in the year under review, its gross earnings declined by 15.4 percent to N630.3 billion from N745.2 billion recorded in the 2017 fiscal year.

However, the net interest income rose to N295.6 billion from N258 billion, while the net income on fees and commission dropped to N81.8 billion from N82.6 billion.

Also, the trading gains went down to N80.2 billion from N158 billion, while the other operating income closed at N17.9 billion in contrast to N22.4 a year earlier.

In the period under review, the personnel expenses rose to N68.6 billion from N64.5 billion, while the operating expenses dropped to N137.9 billion from N144.9 billion.

Zenith Bank said its profit before tax rose to N231.7 billion from N199.3 billion, while the profit after tax appreciated to N193.4 billion from N173.8 billion.

Business Post reports that the earnings per share (EPS) of the financial institution for the 2018 financial year was N6.15k against N5.53k in 2017.

In 12 months, Zenith Bank increased its total assets to N5.956 trillion in 2018 from N5.595 trillion in 2017, while the total liabilities increased to N5.140 trillion from N4.783 trillion.

Meanwhile, the board of Zenith Bank has proposed a final dividend of N2.50k per share which in addition to the 30 kobo per share paid as interim dividend, amounting to N2.80k per share compared with the interim dividend of 25 kobo per share and final of N2.45k per share paid in 2017 financial year.

However, the present dividend recommendation will be presented for ratification by the shareholders at the next Annual General Meeting (AGM) and if approved by the shareholders, the bank will be liable to pay additional corporate tax estimated atN22.3 billion representing the difference between the tax liability calculated at 30 percent of the dividend approved and the tax charge reported in the statement of profit or loss and other comprehensive income for the year ended December 31, 2018.