Shareholders of Zenith Bank Plc have applauded the bank’s cost efficiency business model which has resulted in a 16 percent growth in profit, dove-tailing into growth in dividend payout.
Yesterday the shareholders approved the 280 kobo per share dividend recommended by the board of directors which gives a dividend yield of 12 percent for the 2018 financial year as against 11 percent in 2017.
Responding to some of the issues raised by some shareholders at the 28th annual general meeting of the bank in Lagos yesterday, the managing director of the bank, Mr Peter Amangbo, said the bank’s business strategy has been very efficient in terms of cost management, even in areas such as training and information technology, adding, “we will consistently continue to train our people in the most efficient manner.”
He stated further, “As a financial institution we continue to place a high premium on developing a robust risk management framework which has helped in promoting the soundness of the bank, protecting its assets and ensuring its growth.”
According to the bank’s audited financial results for the 2018 financial year approved yesterday by the shareholders, PBT was N232 billion representing an increase of 16.6 percent over the N199 billion recorded for the same period in 2017.
Notably the figure also represents the highest so far published by any bank in Nigeria in the current reporting period. Also, the results showed that profit after tax (PAT) witnessed an impressive growth of 11 per cent year-on-year to N193 billion from N174 billion.
Analysts have attributed the profitability to the Zenith Group’s optimisation of its cost of funds, cost-to-income ratio and cost of risk, ensuring that earnings per share strengthened by 11% to ¦ 6.15.