Zenith Bank Considers Interim Dividend | Independent Newspapers Limited
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Zenith Bank Considers Interim Dividend

Posted: Aug 7, 2015 at 1:30 am   /   by   /   comments (0)

By Bamidele Ogunwusi,  Lagos


There are indications that the board of Zenith Bank Plc may have yielded to the suggestion by shareholders for an interim dividend payment this year at the annual general meeting in Lagos.

Our correspondent learnt on Thursday that the possibility of distributing interim dividend, the first time in its history, was indeed one of the issues discussed at the recent board meeting to consider the half year financials of the bank.

This is why, a market source close to the bank hinted, the presentation of the half year result to the Nigerian Stock Exchange (NSE) is being delayed, due to the decision to also audit the report.

According to a market source privy to deliberations at the meeting, the half year result is now awaiting Central Bank of Nigeria (CBN) approval before its presentation to the NSE, noting that the decision to offer an interim dividend is coming at a time many other quoted companies have suffered significant decline in bottom-line, with some reporting significant drops of between 40 and 70 per cent in net profit.

Earlier in the year, financial analysts from FBN Capital Limited, while reacting to the first quarter result expressed optimism that the result would attract positive reaction by the market, stressing that it will likely increase its forecast on the bank to move upward slightly. “We expect consensus forecasts to be flat to slightly up.