Zenith Bank Records N130b Profit in 2016

By Modupe Gbadeyanka

One of the leading banks in Nigeria, Zenith Bank, has posted a profit after tax of N130 billion for the financial year ended December 31, 2016. This is against N106 it posted for 2015.

In the company’s financial result released to the Nigerian Stock Exchange (NSE), which was analysed by Business Post, it was observed that the financial firm recorded a gross earning of N508 billion in the year under review, this was in contrast to N432.5 billion it achieved in the corresponding year, 2015.

It was further observed in the financial results that Zenith Bank recorded a profit before tax of N158 billion, compared with N126 billion it posted in the corresponding year of 2015.

However, the company has proposed a final dividend of N1.77k per share to its shareholders which in addition to the 25k per share paid as interim dividend amounts to N2.2k per share (31 Dec 2015: N1.80k per share) from the retained earnings account as at December 31, 2016.

The company this proposal will be presented to the shareholders for approval at the next Annual General Meeting.

It however said if approved, the bank will be liable to pay additional corporate tax estimated at N12.52 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, 2016.

It noted that payment of dividends is subject to withholding tax at a rate of 10 percent in the hand of qualified recipients.