….Offers One for Four bonus
The Zenith Bank Group has proposed a total dividend pay out of N11.3 billion and a bonus of one-for-four for the reporting period ended December 31, 2009; thus, delivering on its promise of continued enhancement of shareholders value.
The Bankâ€™s much expected result which was released on the floor of the Nigerian Stock Exchange (NSE) in Lagos Monday showed a pre-tax profit of N35 billion and a profit after tax of N20.6 billion out of which over N11 billion has been set aside for dividend payout.
During the period under review, the Zenith group recorded gross revenue of N277 billion, up from N211 billion in 2008, representing a 31% revenue growth and increasing dominance in its market share. In achieving this great feat, the group leveraged on its strong liquidity, capital base and more efficient ICT enabled service.
The result was commended by financial analysts and investors as an outstanding one, as it shows the ability of Zenith Bank to sustain its performance, raise the bar of competition and continuously meet the expectations of shareholders in the face of daunting economic challenges.
Equally impressive is the Capital Adequacy Ratio of the bank which stands at about 30%, three times the 10% regulatory minimum requirement under the Basel II framework and also above the industry average
The bankâ€™s liquidity ratio stood at 60% and is more than double the 25% minimum regulatory requirement. This very strong liquidity position is the product of well articulated risk management policies and practices.
The shareholdersâ€™ fund of N337billion unimpaired by losses, equity to total asset ratio of 20% is a strong indication that Zenith Bank has sufficient liquidity to support its businesses and other expansion plans. No doubt, this strong capital base provides the stakeholders a high level of comfort that Zenith Bank is well placed to withstand any unexpected turbulence in the financial sector.
Analysts and investors were quick to hail the result, which enhances Zenith Bankâ€™s reputation as a market leader especially with regard to return on investment. â€œThis outstanding result again shows the ability of the Zenith Brand to sustain its place as the foremost bank in the country,â€ one analyst said.
Most observers noted that the outstanding result would further endear the bank to shareholders who have reaped excellent returns on their investment, especially since the bank went public in 2004.