Another Zenith First
Zenith Bank Plc records another first, as it pays the highest industry dividend of N6.6 billion and hits an assets base of N714 billion
By Udo Onyeka
Zenith Bank Plc last week warmed itself into the heart of investors and stakeholders when it announced the payment of N1.10 per share to its share holders. This amounts to a dividend pay-out of N6.6 billion, an increase from the N4.2 billion dividend it paid out the previous year. This year’s figure represents 57.14 per cent increase over 70 kobo per share paid last year.
A release made available to The Source and signed by Timeyin Ejoor, head, Corporate Communications of the bank, indicated huge performance on all other areas. For, instance, gross earning for the year stood at N58.22 billion, up from the N34.91 billion recorded the preceeding year.
Also, the statement of the full-year result indicated a total assets, plus contingents of N714.51 for the financial year ended June 2006, representing an impressive 92.73 per cent growth from the N370.72 billion recorded the previous year, thus elevating the bank to the position of the largest bank in the country.
Similarly, shareholders’ fund, for the same period jumped by an impressive 146.16 per cent, from N37.78 billion at the end of June 2005 to N93.80 billion. This was boosted by the N53.63 billion raised through an over-subscribed public offer conducted earlier in the year.
Profit-Before-Tax for the year under review was N15.15 billion, a 65.39 per cent increase over the N9.16 billion recorded the previous year.
The Source gathered that the preference of investors for the bank is as a result of its impressive growth pattern and performance over the years. According to Boniface Okezie, chairman, Progressive Shareholders Association of Nigeria (PSAN), “Zenith Bank has grown over the years from a listing price on the floor of the Nigerian Stock Exchange which stood at N10.90 in October 2004 to about N22.00 early this month.
“The Bank has been running one of the best assets qualities in the sector, which showed on the very minimal ratio of non-performing loans of less than 2 per cent as at July 2006, when compared with the average in the industry of about 17 per cent,” Okezie said.
The Source gathered that the impressive growth pattern and performance of the bank has earned Zenith recognition from both local and international organisations.
For instance, since 1999 to date the bank has maintained its “tripple A” rating in the rating analysis conducted by Agusto and Company Limited, a local rating agency.
Similarly, since 2000 to date, the bank has also been rated “tripple A” in the credit risk rating analysis undertaken by Pharez, a leading agency.
For five consecutive years, Fitch’s rating has given Zenith Bank AA - (long term) and F1+ (short term) that the rating reflects its strong domestic franchise, good asset quality and sound earning records.
Zenith has also expanded its franchise beyond Nigerian borders with a full-fledged subsidiary operating in Ghana, as Zenith Bank of Ghana.
Again, the bank led by Jim Ovia, a seasoned banker, was the first to enter into strategic partnership with a foreign financial institution, JP Morgan Chase, a leading global investment bank with a view to manage part of Nigeria’s foreign reserves. Recently Financial Times of London mention Zenith as one of the top banks in Africa and in the world. In this class was eight other Nigerian banks in the group of leading 1,000 global banks.
With the current fiancial muscle of Zenith, analysts are of the view juicier returns on investment and quality services await investors and customers of the bank.
Corrobrating this standpoint of analysts and stakeholders, Ovia assured that the bank would not rest on its oars, but would rather consistently utilise and even imporve upon its use of ICT infrastructure which has been the key tool of its service delivery mechanisms.