Zenith Bank’s Chairman, Jim Ovia to earn about N1.5 billion from interim dividends in H1 2022

Investors in the equity market are usually happy to hear the word dividend. To some of them, it is a harvesting season when they will reap the fruits of their labour. What is exciting about dividends is that the more shares you own, the more money you are guaranteed to receive every time dividends are declared.

Notwithstanding the economic headwinds and rising operational costs fuelled by inflation, most companies quoted on the floor of the Nigerian Exchange Limited (NGX) have continued to leverage the various intervention schemes rolled out by the government, thereby contributing to the impressive profits declared by some of these companies and a subsequent dividend declaration.

One of these companies is Zenith Bank Plc which just recently released its half-year financial report with a declaration of 30 kobo interim dividend for the half-year ended June 30, 2022.

In light of this, checks by Nairametrics revealed that Nigerian business mogul, Jim Ovia who is the Chairman and the founder of Zenith Bank, one of the largest commercial banks in Nigeria owns a total of 5.08 billion units of shares in the bank.

The breakdown reveals that he owns a direct share of 3.55 billion units and an indirect share of 1.53 billion units, giving him controlling rights of 16.16% in the company.

With the declaration of an interim dividend of 30 kobo per share, the astute banker will earn the sum of N1.52 billion from his shareholdings. Mr Ovia alongside other shareholders will be credited after ratification by the shareholders at the next Annual General Meeting. Payment of the dividends is subject to withholding tax rate of 10% in the hands of qualified recipients.

What you should know

• Zenith Bank plc announced an interim dividend of N0.30k for every share of 50k held by shareholders of the group.

• In a disclosure signed by Michael Osilama Otu, Company Secretary, this is subject to appropriate withholding tax which will be paid to those whose names appear on the registrar of members at the close of business on the 6th of September 2022.

• It also stated that the register of shareholders will be closed on September 7th 2022 to enable the registrars to prepare for the payment of dividends.

What the company is saying

• The bank stated that by the 13th of September, it will begin paying electronically to shareholders whose names appear on the registrar of members of September 2022 and who have completed the e-dividend registration and mandated the registrar to pay their dividend directly into their bank account. GDR holders will be paid after this date.

• It also said that shareholders with dividend warrants and share certificates that have remained unclaimed, or yet to be presented for payment or returned for validation to complete the e-dividend registration.

Financial highlights

• Zenith Bank Plc has posted a profit after tax of N111 billion for the first six months of 2022, a 5% increase from the amount in the first half of 2021.

• The company increased interest income by a whopping N18.5% to close at N242 billion in the first half of the year.

• The banks earnings per share were up from N3.38 in H1 2021 to N3.55 in H1 2022

• The company last traded at N22 while its market capitalization stood at N691 billion.