By Aduragbemi Omiyale
The holding company (Holdco) structure being planned by Zenith Bank Plc has been applauded by shareholders, who opined that it would result in greater returns.
The Zenith Bank shareholders gave this submission at the company’s Annual General Meeting (AGM) held in Lagos on Wednesday, May 8, 2024.
At the gathering, the bank’s investors approved the proposed final dividend payment of N3.50 per share, bringing the total dividend for the 2023 financial year to N4.00 per share, with a total value of N125.59 billion, the highest dividend payout by any bank.
Speaking on the cash reward to shareholders, the National Coordinator of the Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, expressed her delight in the exceptional performance of the lender, as evidenced by the numerous awards received during the 2023 financial year.
“We shareholders are very pleased today to receive a final dividend of N3.50 from Zenith Bank. Following an interim dividend of 50 Kobo, the total dividend for the 2023 Annual General Meeting amounts to N4.00— the highest in the banking sector to date.
“We truly appreciate this and are optimistic that the transition to a Holding Company will bring even greater returns. Zenith Bank’s numerous accolades this year position it as the leading bank in the country. We anticipate that the 2024 AGM, marking the first year as a Holding Company, will be even more promising for Zenith,” she remarked.
On his part, the President of the Association of the Rights of Nigerian Shareholders (AARNS), Mr Faruk Umar, expressed his gratitude to the Chairman of the firm, Mr Jim Ovia, for facilitating a seamless succession plan.
“The bank has performed exceptionally well, particularly in terms of succession planning. It’s encouraging to see the new Managing Director promoted from within, reinforcing our belief in the bank’s leadership development. This internal promotion strategy motivates our staff, giving them confidence that they can aspire to the highest levels within the bank,” Mr Umar stated.
The President of the Shareholders Solidarity Association of Nigeria, Mr Timothy Adesiyan, praised the Zenith Bank team for the consistent delivery of value to shareholders.
“The bank’s rapid growth can be attributed to the diligent oversight by our founder, who is also a core investor and actively monitors all operations. This growth is further supported by our adherence to strict corporate governance principles.
“The bank’s performance metrics are delineated and managed by dedicated committees, ensuring accountability and responsiveness. As a stakeholder, I am very pleased with their performance and attentive response to any concerns raised,” he disclosed.
Earlier in his opening statement at the AGM, Mr Ovia thanked the shareholders for their unflinching support and loyalty to the Zenith brand which has been instrumental to the lender’s consistent superior performance.
Also, the company’s chief executive, Mr Ebenezer Onyeagwu, said, “As I prepare to pass the baton to Ms Adaora Umeoji, I am confident in the bank's trajectory under her leadership. I want to express my profound gratitude to our founder, the board, shareholders, customers, and staff for their steadfast support throughout my tenure.
“I earnestly request that you extend the same level of support to my successor. It has been a remarkable journey, and I am immensely proud of what we have accomplished together.
“As I commence the mandatory regulatory cooling-off period, I am optimistic about Zenith Bank’s future, assured that we are on the path to even greater success.”
Related
