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Thursday, 04 April 2013 00:00
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Zenith Bank pays N1.60 per share dividend

Nigeria’s foremost financial institution, Zenith Bank Plc has declared a dividend of N1.60 per share to its shareholders for its operations for the year ended December 31, 2012, following the significant success in its 2012 operations,  which affirmed its leadership position in the nation’s banking industry as  the first to cross the N100 billion ($634m) profit after tax mark in a financial year.

The bank’s audited reports released on the Nigerian Stock Exchange (NSE), Zenith Bank recorded a N100.68 billion ($634 million) profit for the financial year ended 2012, representing a 106.7 percent jump from the N48.70 billion ($303.2 million) recorded in the corresponding period in 2011.

The institution, which is currently Nigeria’s third largest lender by market value, also declared a N102.10 billion ($643.5m) profit before tax  for the financial year under review, indicating a 51.4 percent increase from the N67.44 billion  ($422.9m) recorded in 2011.

The results showed that gross earnings rose by 25.88 percent from N243.94bn ($1.5 billion) to N307.08 billion ($1.9 billion) as loans and advances climbed 10 percent to 1 trillion naira. The bank’s cost-to-income ratio fell to 54 percent from 63 percent.

“Amid the challenging business environment witnessed in 2012, notably the restrictive monetary policies and the double- digit headline inflation rates, Zenith bank delivered yet another year of strong performance,” Chief Executive Officer Godwin Emefiele said in the statement.

According to Emefiele, “Efficiency in our operations led to the significant improvement in our cost-to- income ratio.”

With its total non-performing credit facilities to total credit facilities currently standing at three per cent from the six per cent recorded last year; the result has also shown the bank’s commitment to prudent debt management.

According to the bank in a media statement, “The much expected result confirms the bank’s leadership position in the industry as it became the first to cross the N100 billion profit after tax mark in a financial year.”

“The result also showed the bank is maintaining its leadership position on other parameters with total assets plus contingents of N2.60 trillion, representing a 12.7 percent increase over the N2.30 trillion recorded in 2011.”