BY PETER EGWUATU

… Shareholders decry compulsory electronic dividend payment     …
Zenith Bank Plc has promised to make history by hitting the N2 trillion mark deposit base by the year 2013, even as it decried the difficult operating environment experienced in the financial year 2012.

The bank’s shareholders also decried the move by the Securities and Exchange Commission (SEC) to impose compulsory electronic dividend payment in the nation’s capital market.

Speaking at the Bank’s 22nd Annual General Meeting (AGM) in Lagos, Managing Director/CEO, Zenith Bank Plc, Mr. Godwin Emefiele,  said, “The year 2012 was quite challenging for the industry, but Zenith Bank consolidated on the steady progress recorded in year 2011. We will continue to improve as we strive to reach the N2 trillion mark on deposit base by year 2013.We are now in a position to surpass our present performance. The operating results of 2012 indicated an impressive performance in all parameters giving credence to the increasing market share and acceptance of our brand by Nigeria and international banking public.”

In his own comment, Chairman, Zenith Bank, Sir Steve Omajafor, commended the shareholders at the meeting for their loyalty and contribution towards the growth of the bank.

According to him, “Owing to a number of domestic and external factors, 2012 without any doubt was very challenging one for operators in the banking industry. However in line with our track record, Zenith Bank recorded total deposit base of N1.80 trillion for the year under review, representing a 14 per cent increase over the previous year’s figure of N1.58 trillion.

Profit After Tax (PAT) similarly surged by 132 per cent from N41.30  billion in 2011 to N95.80 billion in 2012. Total assets grew by 12 per cent, from N2.17 trillion to N2.44 trillion, while shareholders’ fund rose by 18 per cent, from M372.02 billion to N438 billion.”

Furthermore, he said, “The future of the bank is bright. We thank you our shareholders for your positive comments as it serves as a source of encouragement to do better.”

Some of the shareholders who spoke at the meeting commended the bank for the impressive performance and dividend payment as well as its listing on London Stock Exchange.

Dr. Faruk Umar, Chairman, Advancement for Rights of Nigerian Shareholders said, “We commend the bank for its results and listing on LSE. This has given our bank more recognition since its shares are traded in international market and we hope for better performance.”

Specifically, Sir Sunny Nwosu, National Co-ordinator, Independent Shareholders Association of Nigeria (ISAN), who spoke for his group said, “ We thank you for the impressive performance  recorded for the financial year 2012. It is a good one in all ramifications, but the task ahead of the bank is how to manage and sustain success.”

He further warned regulators to be cautious of the kind of policies they initiate, saying, “ We the shareholders will totally resist any attempt by SEC to impose sanction on any shareholder who fail to comply with electronic dividend payment requirement.