Zenith Bank maintains lead in 2016, declares N129.65b profit, N1.77 dividend
Leading deposit money bank (DMB), Zenith Bank Plc., has declared a profit after tax of N129.65 billion and a final dividend of N1.77 per share for the year ended December 31, 2016.
Details sited in the latest company’s audited report released by the Nigerian Stock Exchange (NSE Monday in Lagos showed that this was in positive contrast with N105.66 billion posted in the preceding period of 2015.
Besides, the profit represented an increase of 22.7 per cent when compared with figures for 2015 as profit before tax stood at N156.75 against the N125.63 billion declared in 2015.
Within the period under review, Zenith bank also grossed earnings grew by 17.4 per cent to N507. 99 billion compared with N432.54 billion recorded in 2015.
The bank’s non-interest income increased by 45.9 per cent to N25.59 billion due to an 809 per cent increase in foreign exchange revaluation gains of N25.6 billion. This however, declined by 10 per cent from the N8.2 billion reported in nine months of 2016.
Again, the impairment loss on financial assets rose significantly by 106.4 per cent to N32.35 billion in 2016 and 34.6 per cent based on quarter-on-quarter to N10.2 billion in the fourth quarter of 2016.
The board of directors had proposed a final dividend of N1.77 per share to all its investors against a final dividend of N1.55 per share paid in 2015.
Business Hilights recalls that the bank had earlier in 2016 paid a sum of 25k as interim dividend, bringing the total dividend in 2016 to N2.02 per share against N1.80 per share declared in 2015. Zenith Bank is the first bank to declare its 2016 audited result.
Besides, within 23 years, Zenith bank has demonstrated rare resilience and has witnessed exponential growth in virtually all areas. Today, Zenith is undoubtedly one of Nigeria’s strongest financial services institutions and one of the country’s largest banks by market capitalization, shareholders fund and profitability.
The bank’s growth momentum has increased over time and impacted positively on its standing as a market leader. In essence, Zenith Bank continues to make remarkable success on the sustainability agenda which is at the heart of its strategic and business models. As a result, Zenith bank is better positioned to continue on its growth trajectory and our desire to be a vital part of people’s lives and businesses.
Excellent service delivery and development of superior asset quality, strong capital base, professionalism and corporate governance have provided the grounds for consistent high returns to stakeholders. The bank maintains sound risk management and corporate governance culture in line with global best practices.
No doubt, experts believe that since 2004, when the Central Bank of Nigeria (CBN) directed Nigerian banks to put in place a management succession plan, many banks did not take it seriously.
But Zenith Bank in its usual proactive approach to banking puts in place a team of high caliber managers as part of efforts to fortify succession architecture. That design today, produced Mr. Peter Amangbo as the Group managing Director who took over from Godwin Emefiele now CBN Governor.
Amangbo’s leadership intelligence drove Zenith Bank to its current higher levels in both strength and financial services delivery.
Latest in the line of success records is the Zenith Bank’s full year 2016 results which were published recently at the NSE.
Zenith Bank Plc was established in May 1990, and commenced operations in July of the same year as a commercial bank. The Bank became a public limited company on June 17, 2004 and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004 following a highly successful Initial Public Offering (IPO). Zenith Bank Plc currently has a shareholder base of about one million and is Nigeria’s biggest bank by tier-1 capital. In 2013, the Bank listed $850 million worth of its shares at $6.80 each on the London Stock Exchange (LSE).
Headquartered in Lagos, Nigeria, Zenith Bank Plc has over 500 branches and business offices in prime commercial centres in all states of the federation and the Federal Capital Territory (FCT). In March 2007, Zenith Bank was licensed by the Financial Services Authority (FSA) of the United Kingdom to establish Zenith Bank (UK) Limited as the United Kingdom subsidiary of Zenith Bank Plc. Zenith Bank also has subsidiaries in: Ghana, Zenith Bank (Ghana) Limited; Sierra Leone, Zenith Bank (Sierra Leone) Limited; Gambia, Zenith Bank (Gambia) Limited. The bank also has representative offices in South Africa and The People’s Republic of China. The Bank plans to take the Zenith brand to other African countries as well as the European and Asian markets.
Zenith Bank Plc blazed the trail in digital banking in Nigeria; scoring several firsts in the deployment of Information and Communication Technology (ICT) infrastructure to create innovative products that meet the needs of its teeming customers. The bank is verifiably a leader in the deployment of various channels of banking technology, and the Zenith brand has become synonymous with the deployment of state-of-the-art technologies in banking.
In a statement personally issued by the GMD of Zenith Bank and posted on the bank’s website, Peter Amangbo said “Going forward, our challenges will include, though not limited to, further elevating our standing as a reputable financial institution by establishing a corporate structure that can stay imperturbable. However, I am glad that we are well positioned and adequately equipped to remain at the forefront of Nigeria’s financial services sector”.