Jim Ovia, the chairman and founder of Zenith Bank, is set to receive a N25.4 billion dividend payout for the 2024 financial year, following the bank’s record-breaking earnings performance.
The payout, scheduled for April 15, 2025, comes as Zenith Bank reported a 52.5% increase in profit after tax, reaching N1.03 trillion, compared to N676.9 billion in the prior year.
According to the bank’s financial statements for the year ended December 31, 2024, the Board of Directors has proposed a final dividend of N4.00 per share, which, when added to the N1.00 per share interim dividend, brings the total dividend to N5.00 per share.
This marks an increase from the previous year, when the total dividend stood at N4.00 per share (interim: N0.50, final: N3.50).
Ovia, who holds 3,552,949,395 direct shares and 1,529,851,344 indirect shares in the bank, bringing his total shareholding to 5,082,800,739 shares, stands to receive N25,414,003,695 in dividends based on the N5.00 per share payout.
Payout to shareholders
Zenith Bank’s total dividend payout for 2024 stands at N141.28 billion, a significant increase from N106.74 billion in 2023, reflecting its robust earnings performance.
- In line with Nigerian tax regulations, these dividends are subject to a 10% withholding tax.
- The bank’s gross earnings surged to N3.9 trillion, up from N2.39 trillion in the previous year, driven largely by interest income, which more than doubled to N2.7 trillion, compared to N1.14 trillion in 2023.
- Nigerian banks have benefited substantially from the high-interest-rate environment, as the Central Bank of Nigeria (CBN) maintains elevated monetary policy rates to curb inflation. Zenith Bank’s net interest income climbed to N1.73 trillion, supported by strong earnings from loans and advances, as well as strategic investments in low-risk government securities, such as treasury bills.
- A majority of Zenith Bank’s revenue was generated within Nigeria, accounting for N3.5 trillion out of the total N3.97 trillion in net consolidated revenue. Meanwhile, its African and European operations saw revenue rise to N510 billion, up from N281.1 billion in the prior year.
More insight
Zenith Bank’s robust performance shows the resilience of Nigeria’s banking sector, which continues to capitalize on rising yields on government securities and a growing loan book. With inflationary pressures persisting, analysts expect the CBN’s tight monetary stance to sustain the profitability of tier-one banks in the near term.
As Zenith Bank continues its expansion across Africa and beyond, its earnings trajectory positions it as one of Nigeria’s most formidable financial institutions.
