Zenith Bank Assures Shareholders of Dividend Payment

Strategic Insights -

Nigerian investors were reassured by Zenith Bank Plc on Wednesday, despite the central bank's instructions to temporarily suspend dividend payments, bonuses, and foreign subsidiary investments. The bank stated that it has taken steps to ensure complete provisioning by June 30, 2025, and expects to exit all Central Bank of Nigeria (CBN) forbearance arrangements by the end of the first half of 2025.

Key Takeaways:

  • Zenith Bank Plc has assured shareholders that it has taken appropriate and comprehensive steps to ensure full provisioning by June 30, 2025.
  • The bank expects to exit all CBN forbearance arrangements by the end of the first half of 2025.
  • With regards to the Single Obligor Limit (SOL) forbearance, Zenith Bank expressed confidence that it will bring the exposure within the applicable regulatory limit on or before June 30, 2025.
  • The bank has made substantial provisions for customers under two other credit facilities, and is confident of satisfying all relevant conditions to pay dividend to shareholders in the current year.
  • Zenith Bank recalled its recent successful capital raising exercise, which raised its capital base beyond the N500 billion regulatory requirement.

Statistics:

  • By June 30, 2025, Zenith Bank Plc aims to have completed full provisioning.
  • The bank expects to exit all CBN forbearance arrangements by the end of the first half of 2025.
  • The bank's capital base has been raised beyond the N500 billion regulatory requirement due to a recent successful capital raising exercise.

Sources:

  • Reference: "Re: Temporary Suspension of Dividend Payments, Bonuses and Investment In Foreign Subsidiaries" by Zenith Bank Plc to the Nigerian Exchange Limited
  • Central Bank of Nigeria circular regarding regulatory forbearance in respect of Single Obligor Limit (SOL) and other credit facilities. (Date not specified)