National Wire About Nigerians, Nigerian Business and Other Stories
Zenith Bank Plc said on Tuesday it would seek shareholder approval next month to raise 100 billion naira ($318 million) via a combination of share or bond sale and global depository receipts.
The lender also said it would seek approval to increase its share capital to 40 billion naira from 20 billion naira at the shareholders’ meeting on March 22.
The Bank had on Monday recorded a gross earnings of N507.9 billion in its full year operations, as against N432.5 billion achieved in the corresponding period of 2015.
Specifically, the bank’s result for the full year ended December 31, 2016, showed 17.4 per cent rise in gross earnings, from N432.5 billion in 2015 to N507.9 billion during the period under review.
The bank’s Profit Before Tax (PBT) stood at N156.7 billion, representing 24.8 per cent increase over N125.6 billion in 2015.
The financial institution’s Profit after tax (PAT) recorded rose by 22.7 per cent to N129.6 billion, up from N105.6 billion.
The bank is proposing a final dividend of N1.77 kobo after an initial payment of 25kobo.
According to the bank’s filling before the management of the Nigerian Stock Exchange for its verification, the bank noted that “the Board of Directors, pursuant to the powers vested in it by the provisions of section 379 of the Companies and Allied Matters Act (CAMA) of Nigeria, proposed a final dividend of N1.77 kobo per share which in addition to the N0.25kobo per share paid as interim dividend amounts to N2.02 kobo per share (31 Dec 2015: N1.80 kobo per share) from the retained earnings account as at 31 Dec 2016.
It further noted that the bank’s financial statement is subject to shareholders approval at the next Annual General Meeting. “If the proposed dividend is approved by the shareholders, the Bank will be liable to pay additional corporate tax estimated at N12.52 billion representing the difference between the tax liability calculated at 30 per cent of the dividend approved and the tax charge reported in the statement of profit or loss and other comprehensive income for the year ended 31 Dec 2016. Payment of dividends is subject to withholding tax at a rate of 10 per cent in the hand of qualified recipients.
