By Dipo Olowookere
The share price of Zenith Bank Plc has been adjusted to N22.20 per unit by the Nigerian Stock Exchange (NSE).
The change in the value of the lender’s equities was done on Tuesday, March 9, 2021, and it was to reflect the proposed N2.70 proposed by the board of the company as the final dividend for the 2020 financial year.
Business Post reports that about two weeks ago, Zenith Bank released its financial statements for last year and the board recommended the cash reward.
In a notice filed by the financial institution, it was disclosed that the final dividend was subject to the 10 per cent withholding tax and approval at the Annual General Meeting (AGM) to hold at the Civic Centre, Victoria Island, Lagos on Tuesday, March 16, 2021, at 9am.
The cash reward would be paid on March 16 to shareholders whose names appear on the register of members as at March 8, 2021, and have completed the e-dividend registration.
Yesterday, which was the qualification date, the price of the company’s stocks closed at N24.90 per unit and today, the value of the final dividend was deducted, opening at the exchange at N22.20 this morning.
The NSE informed stockbrokers of this development in a circular which read, “The equity price of Zenith Bank Plc was adjusted today, March 9, 2021, for a dividend of N2.70 as recommended by the company’s board of directors.
“The last close price was N24.90, while the ex-div price is N22.20.”
However, when trading activities closed on Tuesday, the share price of Zenith Bank depreciated by 2.03 per cent or 45 kobo to trade at N21.75.
In 2020, Zenith Bank boosted its profit before tax to N255.9 billion from N243.3 billion and grew its profit after tax to N230.6 billion from N208.8 billion, with the earnings per share (EPS) rising to N7.34 from N6.65.
Also, the lender improved its gross earnings to N696.5 billion from N662.3 billion in 2019, with interest income making a significant contribution of N420.8 billion, higher than N415.6 billion a year earlier.
Zenith Bank, however, recorded a decline in net income on fees and commission to N79.3 billion from N100.1 billion, while trading gains moved up to N121.7 billion from N117.8 billion, with the other operating income rising to N50.7 billion from N14.2 billion.
