Banking
Zenith Bank Offers Shareholders Highest Half year Dividend Pay-out of N1
By Dipo Olowookere
Shareholders of Zenith Bank Plc will receive the highest half-year dividend pay-out of N1 per share in the company’s history for the first half of 2024, Business Post reports.
The board of the lender confirmed this development in the financial statements for the period ended June 30, 2024, filed to the Nigerian Exchange (NGX) Limited over the weekend.
The cash reward, expected to be paid to shareholders in the coming weeks, will also be the highest interim dividend in the Nigerian banking sector to date.
In the first six months of this year, the financial institution posted an impressive triple-digit growth of 117 per cent in gross earnings from N967.3 billion in H1 2023 to N2.1 trillion, largely driven by acceleration in both interest income and non-interest income.
It was observed that the interest income surpassed the N1 trillion mark with a growth of 177 per cent to N1.1 trillion from N415.4 billion in the same period of last year, helped by the growth of and by the effective pricing of risk assets.
On its part, the non-interest income grew by 74 per cent in the period under consideration to N899.3 billion from 515.7 billion.
The results showed that the top line growth, which happened amid a challenging microenvironment, propelled the bottom line, with a 108 per cent year-on-year (YoY) increase in profit before tax to N727 billion from N350 billion in H1 2023 as the post-tax profit jumped by 98 per cent from N292 billion to N578 billion in the same period, leading to a 98 per cent spike in earnings per share (EPS) to N18.41 from N9.29 in H1 2023.
As for the balance sheet, total assets grew by 35 per cent on a year-to-date basis from N20.4 trillion in December 2023 to N27.6 trillion in June 2024, while customer deposits increased by 29 per cent from N15.2 trillion in December 2023 to N19.6 trillion in June 2024, with gross loans up by 44 per cent from N7.1 trillion in December 2023 to N10.2 trillion in June 2024, aided by loans disbursements to customers and the translation effect of foreign currency denominated loans.
However, the organisation’s consistently stringent risk acceptance criteria helped ensure that the non-performing loan ratio continued to show only modest growth, increasing from 4.4 per cent in December 2023 to 4.5 per cent in June 2024 despite the challenging macroeconomic environment.
Policies put in place by the team for operational efficiency resulted in only a marginal increase in the cost-to-income ratio on a y-o-y basis from 38.5 per cent to 39.4 per cent.
But the heightened risk environment has fuelled a growth in impairment levels, thus mildly elevating the cost of risk from 8.8 per cent to 9.7 per cent, with the cost of funds up from 2.6 per cent to 4.4 per cent due to the high-interest rate environment, which also led to growth in interest expense from N153.6 billion in H1 2023 to N434.4 billion in H1 2024.
Despite this, net interest margin grew by 49 per cent from 5.9 per cent in H1 2023 to 8.8 per cent in H1 2024, underscoring the efficient repricing of interest-earning assets and interest-accruing liabilities.
In the period under review, the capital adequacy ratio improved from 21.7 per cent in December 2023 to 23 per cent in June 2024, the loan-to-deposit ratio grew by 11 per cent from 46.5 per cent to 51.7 per cent, while the liquidity ratio reduced from 71 per cent to 59 per cent. All prudential ratios are still well above regulatory thresholds.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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