Zenith Bank posts 47% increase in gross earnings in 2017

Zenith Bank Plc headquarters
Zenith Bank Plc

Zenith Bank on Monday proposed final dividend of N2.45 kobo per share for every 50 kobo held by its investors as part of its declarations for the financial year ended December 31, 2017.

A directors’ report accompanying an official filing revealed the bank recorded a 46.7 per cent increase in the Group gross earnings as well as 29.8 per cent increase in profit before tax.

In a corporate filing with the Nigerian Stock Exchange on Monday, the Company Secretary, Michael Otu, said the payment of the latest dividend brings to N2.70 kobo the total dividend paid to its investors for the financial year.

However, Mr. Otu said the announcement was still subject to deductions of appropriate withholding tax and approval by the relevant authorities as well as the shareholders.

Consequently, all shareholders of the bank whose names appear in the registrar of members as at the close of business on April 3, 2018 would be paid the approved dividends as proposed.

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The company secretary indicated that the register of shareholders would be closed subsequently on April 4 and would remain closed till April 9, both days inclusive.

He announced that all the dividends would be paid on April 13, 2018 to designated bank accounts of shareholders whose names appear on the Register of members as at April 3, 2018.

“Shareholders who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts will have their accounts credited. GDR holders will be paid after the local payment date,” he said.

Highlights of the Bank Group’s operating results for the year under review showed gross earnings of about N745.2 billion against about N508 billion recorded in the corresponding period ended December 31, 2016.

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Profit before tax, the financial stament showed, increased from about N156.75 billion in December 2016 to N203.46 billion in the year under review, while income tax expenses dropped from N27.65 billion the previous year to about N25.53 billion.

The statement further revealed that profit after tax rose from about N129.65 billion in 2016 to about N177.9 billion, while transfer to statutory reserve increased from N19.02 billion in 2016 to N23.57 billion.

Similarly, transfer to retained earnings and other reserves equally increased from N110.4 billion in 2016 to about N154.04 billion during the year.

On the proposed dividend, the statement explained that the N2.45 per share being offered was in addition to about 25 kobo per share paid as interim dividend earlier.

Added to the final payment of N1.77 per share paid in 2016, it would bringing the disbursement from the retained earnings account to N2.70 per share as at December 31, 2017.

The proposed dividend, which is subject to approval by shareholders at the annual general meeting scheduled for April 13, 2018 in Abuja, would be in addition to additional corporate tax of about N21.08 billion.

This represents the difference between tax liability of 30 per cent of the approved dividend and the tax charge in the profit and loss account statement.

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