Zenith Bank to pay N9.42bn as half-year interim dividend
Zenith Bank Plc released its audited interim report for the half-year (H1) ended June 2018 with a proposal to pay an interim dividend of 30kobo per share amounting to N9.4billion from the retained earnings account as at 30 June 2018.
The bank in H1’ 2017 paid interim dividend of N7.85billion being 25kobo per share.
The proposed interim dividend represents about 9 percent of a record N107.358billion pre-tax profit for the review first half.
The tier-1 lender’s financial scorecard for the H1 period shows it made a profit before tax (PBT) of N107.35billion in H1’18 period against N92.18billion in H1’17 representing an increase of 16.5percent.
The bank’s Gross Earnings fell by 15.3percent to N322.20billion against N380.44billion in the corresponding first-half period of 2017. Investors raised bet on the bank’s shares prompting a 10kobo gain, from N23.85 to N23.95 at the close of trading on the Lagos Bourse. If the proposed dividend is paid, the Bank will be liable to pay income tax in advance totalling N2.83 billion representing, 30percent of the interim dividend of N9.42billion.
Only the shareholders whose names appear in the register of members as at close of business on August 17 will qualify for the proposed interim dividend as the bank closes its register of shareholders on August 20, to enable the Registrars prepare for payment of the interim dividend on August 24.
Jim Ovia owns 2.946billion units or 9.38 percent of Zenith Bank shares while Stanbic Nominees Nigeria Limited accounts for 6.5billion units. The bank’s total market capitalisation is N751.946billion with shares outstanding of 31.396billion units.
Investment analysts at Lagos-based Afrinvest expect a bullish stock market performance this week “as investors anticipate positive H1:2018 earnings of bellwethers” and were positive on the performance of stocks on their equity watch-list which includes Zenith Bank Plc.
Profit After Tax (PAT) increased by 8.5percent to N81.73billion, from N75.31billion in the corresponding first-half period of 2017.
The bank’s Cost to Income Ratio (CIR) increased to 49percent from 45.2percent in H1’17; while Loan to Deposits declined to 73.1percent, from 75.5percent in first-half of 2017.
Loans and Advances decreased by 10.9percent to N2.313trillion from N2.596trillion in H1’17; while deposits decreased by 7.9percent to N3.165trillion in H1’18 from N3.437trillion in H1’17.
The bank’s Interest Income declined by 12.8percent to N228.670billion in H1’18, down from N262.257billion in H1’2017. Loan Loss Expenses decreased by 77.1percent, to N9.72billion in H1’18, from N42.39billion in H1’17.