Zenith Gets Kudos Over Dividend Policy

Some shareholders on Monday commended the board and management of Zenith Bank Plc, for what they described as committed efforts to console Nigerian investors.

The shareholders said in separate interviews, that the bank’s dividend policy was a proactive mechanism to rekindle investors’ interest and boost market liquidity.

President of Progressive Shareholders Association of Nigeria, Mr Boniface Okezie,said that Zenith Bank’s result was a reflection of the bank’s management and business thrust. “It takes hard work and good management to make profit in Nigeria considering the harsh operating environment. “

At the market price of about N13 per share and a proposed dividend of 95k under a depressed atmosphere, it is a better way of rewarding shareholders,” Okezie said.

The General Secretary of the Independent Shareholders Association of Nigeria (ISAN),Mr Adebayo Adeleke, described the result as heartwarming. “We are not expecting 95k dividend because of the banking sector problem of three years ago. “The result in the face of the reforms will now be the benchmark for other banks. It will stimulate a kind of pressure for other banks to perform,” Adeleke said.

Former Publicity Secretary of the Nigerian Shareholders Solidarity Association, Gbadebo Olatokunbo,said that the result of the bank was the fallout of the ongoing banking reforms.

He described the bank’s dividend payout as a welcome development and a better way to compensate shareholders. Zenith Bank had only on March 9, declared a dividend of 95k per share for the financial year ended December 31, 2011 as against 85k dividend paid in 2010.