The approval was given at the 33rd Annual General Meeting of Zenith held at the Civic Centre, Victoria Island, Lagos, on Wednesday.

The bank’s directors had proposed a final dividend of NGN3.50 per share, bringing the total dividend for 2023 to N4 per share.

The banking group paid N125.59bn as a dividend for the 2023 financial year, which is the highest dividend payout by any bank for last year.

Mrs Bisi Bakare, the national coordinator of the Pragmatic Shareholders Association of Nigeria, expressed her delight in the exceptional performance of the bank.

She declared: “Shareholders are very pleased today to receive a final dividend of N3.50 from Zenith Bank. Following an interim dividend of 50 kobo paid last December, the total dividend for the 2023 Annual General Meeting amounts to N4.00— the highest in the banking sector to date.

“We truly appreciate this and are optimistic that the transition to a holding company will bring even greater returns. Zenith Bank’s numerous accolades this year position it as the leading bank in the country. We anticipate that the 2024 AGM, marking the first year as a holding company, will be even more promising for Zenith.”

Dr Faruk Umar, the president of the Association of the Rights of Nigerian Shareholders,  lauded the group’s chairman for facilitating a seamless succession plan.

He stated, “The bank has performed exceptionally well, particularly in terms of succession planning. It is encouraging to see the new managing director promoted from within, reinforcing our belief in the bank’s leadership development. This internal promotion strategy motivates our staff, giving them confidence that they can aspire to the highest levels within the bank.”

Dr Jim Ovia, the founder and chairman of Zenith Bank, thanked the shareholders for their unflinching support and loyalty to the Zenith brand, which had been instrumental to its consistent superior performance.

Speaking on his forthcoming retirement,  Dr Ebenezer Onyeagwu, the group managing director/chief executive officer,  said, “As I prepare to pass the baton to Dame Adaora Umeoji, I am confident in the bank’s trajectory under her leadership. I would like to express my profound gratitude to our founder and Chairman, Dr Jim Ovia, CFR, and to the board, shareholders, customers, and staff for their steadfast support throughout my tenure.

“I earnestly request that you extend the same level of support to my successor. It has been a remarkable journey and I am immensely proud of what we have accomplished together. As I commence the mandatory regulatory cooling-off period, I am filled with optimism for Zenith Bank’s future, assured that we are on the path to even greater success.

In 2023, Zenith Bank Group achieved a 125 per cent growth in gross earnings to N2.13tn, from N945.6bn in the previous year, driven by a 112 per cent growth in interest income and a 141 per cent growth in non-interest income.

In 2024, Zenith Bank Group plans to expand its reach following its restructuring into a holding company structure, adding new verticals to its businesses and pursuing growth in all chosen markets, locally and internationally.

So far, Dangote Cement proposed a dividend of N30 per share or a total of N511.23 billion for the period under review.

Zenith Bank Plc offered a total dividend of N109.886 billion, representing N3.50 per share, while BUA Foods paid shareholders a dividend of N5.50 per share or N99 billion.

However, Guaranty Trust Holdings Company as indicated interest to  pay N2.70 per share, amounting to N79.464 billion, United Bank for Africa (N2.30 per share or N78.658 billion), Access Holdings (N1.80 per share or N63.981 billion), BUA Cement (N2 per share or N67.728 billion), Lafarge Africa (N1.90 per share or N30.605 billion), Stanbic IBTC Holdings (N2.20 per share or N28.505 billion), and Geregu Power (N8 per share or N20 billion) respectively.

Distributing dividends is a way for companies to share their profits with their shareholders, typically in the form of cash payments or additional shares.

The year 2023 witnessed upheaval globally and it came with significant headwinds across all emerging markets, among other markets.

For many investors, dividend-paying stocks have come to make a lot of sense in Nigeria given the almost cultural belief that making returns on investment is the essence of engaging in any investment or business plan.

Other companies such as: MeCure Industries offering shareholders dividend of 0.15 kobo, amounting to N600 million, Multiverse Mining and Exploration (0.05 kobo or N210 million), Nigerian Exchange Group (75 kobo or N1.473 billion), Africa Prudential (45 kobo or N900 million), Abbey Mortgage Bank (0.04 kobo or N406 million), Trans-Nation Wide Express (0.02 kobo or N9 million), TotalEnergies Marketing Nigeria (N25 per share or N8.488 billion), United Capital (N1.80 per share or N10.8 billion), Julius Berger (N3 per share or N4.8 billion),MRS Oil (N2.36 per share or N809 million), Meyer (30 kobo or N159 million), Infinity Trust Mortgage Bank (15 kobo or N626 million), May & Baker Nigeria (30 kobo or N518 million), CAP (N1.55 or N1.263 billion), and Nigerian Aviation Handling Company (N2.54 or N4.950 billion).

Meanwhile, Skyway Aviation Handling Company declared total dividend of N406 million or 30 kobo per share, UACN (22 kobo or N644 million), McNichols (0.02 kobo or N22 million), Beta Glass (N1.40 per share or N840 million), Okomu Oil (N14 per share or N13.355 billion), Berger Paints (80 per share or N232 million), Wema Bank (50 kobo or N6.429 billion), Transcorp Hotel (20 kobo or N205 million), and Transnational Corporation (10 per share or N4.065 billion).

It will be noted that 2023 was a year of two halves when considered from the prism of fiscal and monetary policy actions.

In H1, fiscal imprudence of the past administration, the botched implementation of the naira redesign policy, persistent insecurity and policy misalignments as well as pre-election jitters deteriorated critical macroeconomic variables, debt profile, and inflation rate.

In H2, 2023 partial removal of PMS subsidy and realignment of FX rates, all have an effect on the Company’s financial performance for the year under review.

Meanwhile, analyst from  APT Securities and Funds Limited,  stated that the investing community is delighted by the dividends declared so far, saying that the companies were able to increase the amount of dividend declared when compared to previous year.

Also, Dr. Faruk Umar, the president, Association for the advancement of the Rights of Nigerian Shareholders (AARNS), noted that dividend payment is an important component of an investor’s investment strategy which provides both financial rewards and confidence in the company’s performance and prospects.

He said,

“dividend payments provide shareholders with a regular income stream. This can be particularly beneficial for investors seeking steady income, such as retirees or those looking to supplement their salary. Companies that consistently pay dividends demonstrate financial stability and predictability, which can be reassuring for investors, hence, the announcement is coming at a right time when shareholders need it for one thing or the other.”