Zenith Bank, managed by Nigerian banking billionaire Jim Ovia, accomplished a stunning financial feat at the end of its fiscal year 2023, exceeding the $500 million profit mark and cementing its status as Nigeria’s most profitable lender.
Zenith Bank’s annual report shows a 202.3 percent increase in earnings, reaching N676.91 billion ($522.03 million) by the end of fiscal year 2023. This considerable increase was caused by a combination of rising interest income and substantial gains from foreign currency portfolio revaluations.
Interest income rose by 111.9 percent, from N540.17 billion ($416.6 million) in 2022 to N1.144 trillion ($887 million) in 2023, establishing Zenith Bank as the country’s biggest lender in terms of interest income. Furthermore, trading income from foreign exchange revaluations increased significantly, jumping from N212.7 billion ($164.05 million) to N566.97 billion ($437.3 million) over the same time.
Zenith Bank, a large Nigerian financial services provider licensed by the Central Bank of Nigeria, has a significant presence throughout Nigeria and Anglophone West Africa. Jim Ovia founded the bank in 1990, and it has played a major role in the expansion and digitalization of Nigeria’s banking sector. Ovia still owns 16.2 percent of the group, which equates to 5,072,104,311 ordinary shares.
The bank’s strong financial performance resulted in a spike in total comprehensive income, which increased from N196.65 billion ($152.65 million) to N1.05 trillion ($815.06 million). Furthermore, total assets increased from N12.28 trillion ($9.55 billion) on December 31, 2022, to N20.37 trillion ($15.84 billion) by December 31, 2023.
Retained earnings also increased significantly, rising from N625 billion ($486.2 million) to N1.18 trillion ($918 million), confirming Zenith Bank’s status as the only Nigerian lender with more than N1 trillion in retained earnings as of December 31, 2023.
In recognition of this tremendous achievement and the institution’s commitment to rewarding shareholders, Zenith Bank’s board of directors suggested a final dividend of N3.5 ($0.00271) per share. When combined with the interim dividend of N0.5 ($0.000386) per share, the total dividend per share equals N4 ($0.00309).
This is an increase above the total dividend per share of N3.2 ($0.00247) given in 2022, which included an interim dividend of N0.3 ($0.0002319) per share and a final dividend of N2.9 ($0.00224) from retained earnings.
Zenith Bank’s strong financial performance and higher dividend payout demonstrate the company’s resilience and commitment to providing value to its shareholders in the face of a changing economic landscape.
