Responding directly to shareholder expectations, Dr. Umeoji stated emphatically, “For the question of dividend, I am sure that is what excites shareholders… We need to pay more dividends. If you look at the dividend payment trajectory over the years, we have always increased what we paid and we will continue to do that.” This direct and unequivocal commitment resonated positively with the assembled investors.
Dr. Umeoji further underscored Zenith Bank’s overarching strategy, emphasizing the institution's commitment to building an efficient, resilient, and sustainable organization. She articulated a vision of a bank that not only navigates prevailing macroeconomic headwinds effectively but is also built to "outlive generations to come," signaling a focus on long-term value creation.
This forward-looking assurance gained significant traction against the backdrop of the bank’s recently concluded recapitalization exercise. Dr. Umeoji proudly announced that the exercise was met with overwhelming investor confidence, achieving a subscription rate of 160%, far surpassing initial expectations. This robust outcome provides Zenith Bank with a substantial capital buffer, alleviating any immediate pressure for further fundraising. “We are not under pressure to go for a second plan to raise money. We have a robust capital buffer. Which means we are ready to delight our shareholders,” she confidently affirmed.
In her address, Dr. Umeoji adeptly balanced the imperative of long-term strategic resilience with the legitimate expectations of shareholders for near-term rewards. She characterized the prospect of a “quantum leap” in dividend payouts not merely as a possibility, but as a concrete commitment, stating, “I know shareholders are looking for a quantum leap, and we are equal to the task.”
Zenith Bank’s confidence in its ability to deliver enhanced dividends is firmly rooted in its consistent and impressive track record of rewarding shareholders. Unlike many institutions that merely express intentions, Zenith Bank has consistently translated its profitability into tangible returns for its investors, even amidst periods of macroeconomic uncertainty.
In the 2024 financial year, Zenith Bank demonstrated this commitment by distributing a total dividend of N5.00 per share, comprising both interim and final dividends. This aggregate payout amounted to a substantial N195.68 billion, positioning it as one of the highest total dividend payouts within the Nigerian banking sector for the year. This dividend distribution was supported by a profit after tax of N1.03 trillion, resulting in a healthy dividend payout ratio of 18.94%.
Based on current market prices, Zenith Bank’s 2024 dividend translates to an attractive dividend yield of 10.53%, making it one of the most compelling in the Nigerian stock market. However, the total return for shareholders in 2024 extends beyond dividends. When factoring in capital appreciation alongside the dividend payout, Zenith Bank delivered an impressive total shareholder return of 70.2% for the year, highlighting the overall value generated for its investors. The bank’s market capitalization also witnessed significant growth, increasing from N1.213 trillion at the beginning of the year to N1.869 trillion by year-end.
A longer-term analysis further solidifies Zenith Bank’s commitment to shareholder returns. Between 2020 and 2024, the bank distributed a cumulative dividend of N613.25 billion from total profits of N2.41 trillion. This translates to a 5-year Compound Annual Growth Rate (CAGR) of 20% in dividend payments, providing a clear and quantifiable demonstration of the bank’s consistent focus on rewarding its shareholders. Notably, the 2024 dividend payout of N195.676 billion represented a significant 55.81% increase compared to the N125.58 billion paid in 2023, underscoring the bank's accelerating commitment to dividend growth, even surpassing its own 5-year growth rate.
Underpinning this optimistic dividend outlook is Zenith Bank’s strong performance in the initial months of 2025. In the first quarter alone, the bank reported a robust 20.7% growth in profit after tax, reaching N311.83 billion. This early success already accounts for over 30% of the bank’s total earnings for the entire 2024 financial year, signaling a strong momentum that bodes well for its financial performance and dividend-paying capacity in the current year.
In conclusion, Zenith Bank, under the leadership of Dame Dr. Adaora Umeoji, has delivered a clear and compelling message to its shareholders: the bank is financially robust, strategically focused, and firmly committed to delivering enhanced returns through increased dividend payouts. Backed by a strong capital base, consistent earnings growth, a proven track record of dividend distribution, and a confident new leadership, Zenith Bank appears well-positioned to fulfill its promise of a “quantum leap” in dividends, reinforcing its standing as a rewarding investment within the Nigerian financial landscape.