At the recently concluded 34th Annual General Meeting (AGM) of Zenith Bank Plc, held in Lagos, the bank’s trailblazing Group Managing Director/Chief Executive Officer, Dame Dr. Adaora Umeoji, OON, delivered a powerful and forward-looking message to shareholders — a pledge of quantum leaps in future dividend payouts anchored on solid fundamentals and strategic foresight.
Her declaration was both timely and visionary, coming just hours before the bank published its Q1 2025 unaudited financial results, which revealed a 20.7% year-on-year surge in profit after tax (PAT) to ₦311.83 billion. This performance, in a high-interest macroeconomic environment, not only validated her optimism but also set a confident tone for the bank’s new era under her leadership.
“Dividends Will Not Just Rise — They Will Leap”
In her address to shareholders, Dame Umeoji was emphatic:
“We are no longer content with incremental growth. Zenith Bank is charting a path where dividend payouts will not just rise — they will leap. We are investing in the right assets, people, and platforms to drive this transformation.”
She praised the resilience of the bank’s model, and noted that recent financial performance underscores the institution’s ability to thrive amid shifting economic currents. Her remarks struck a balance between strategic prudence and bold ambition, resonating deeply with both long-term investors and institutional observers.
Q1-25 Results: Proof of a Powerful Engine
Just as shareholders digested the AGM’s big promises, the Q1-25 financial scorecard arrived — and it did not disappoint.
Zenith Bank reported a strong 71.5% year-on-year growth in interest income to ₦837.64 billion, driven by broad-based gains across key segments:
- Loans to customers surged by 53.4% year-on-year
- Investment securities grew by a staggering 113.2% year-on-year
- Placements with banks increased by 41.4% year-on-year
Despite a 67.1% year-on-yeardip in non-interest income (NII) to ₦89.27 billion — largely due to a slump in investment income (-89.5% year-on-year) and fees/commission — the bank’s net interest income shot up by 92.9%year-on-year to ₦591.19 billion, aided by a drop in loan impairment charges (-11.8%year-on-year ). The resilience of core banking operations more than offset the temporary non-interest income setback.
Operating profit before tax (PBT) rose by 9.6%, while a lower tax burden (-37.0%year-on-year ) gave PAT a significant lift to ₦311.83 billion.
However, EPS fell slightly (-7.7%year-on-year to ₦7.59) due to dilution from a share issuance of 9.67 billion units — a strategic move aimed at future capital adequacy and long-term growth.
Rising Costs, But Controlled Impact
While the bank’s cost-to-income ratio (ex-LLE) climbed to 41.2% (from 34.9% in Q1-24), due to rising OPEX — particularly technology investments (+66.8%year-on-year ) and regulatory costs — the management reassured stakeholders that these expenditures were strategic and necessary to sustain Zenith’s market leadership in digital banking and compliance.
Confidence Echoed in the Hall
At the AGM, shareholders welcomed the strong performance with renewed trust. Mr. Chidi Eze, a major institutional investor, remarked:
“This is the kind of leadership we expected from Dr. Umeoji — confident, data-driven, and with her eyes on the future. The numbers back her up.”
Retail investor Mrs. Amina Salako added,
“The dividend promise is music to our ears, but what makes it real is the fact that Zenith continues to outperform its peers.”
Looking Ahead: A Dividend-Rich Horizon
In closing her AGM remarks, Dame Dr. Adaora Umeoji assured shareholders that the bank would continue to deploy capital prudently, enhance digital infrastructure, and deepen its pan-African reach.
“We are building a stronger, smarter Zenith — one that rewards loyalty, embraces innovation, and delivers consistently. The quantum dividend era is not just a promise. It is a plan in motion.”
As the sun sets on the 34th AGM and shareholders pocket the strong Q1 performance as proof of things to come, one thing is certain — Zenith Bank under Dame Umeoji is setting a bold, high-dividend agenda that may redefine banking excellence in Nigeria and beyond.
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