Zenith Bank reports 2.9% leap in H1 2019 gross earnings
Zenith Bank has postponed the date for the payout of its 30
kobo interim dividend from the proposed date of 2nd September 2019, to
Wednesday 4th September 2019.
This statement is contained in a notification sent by the
bank to the Nigeria Stock Exchange.
Reason for the postponement: According to the bank, the date
was pushed forward to ensure that all transactions executed on the
qualification date of 29th August 2019 are settled and to determine the number
of eligible shareholders.
The statement read, “Further to the publication of the
Audited Financial Statement of Zenith Bank Plc for the half-year ended 30 June 2019
on 19 August 2019, whereby the Board of Directors declared an interim dividend
of 30 kobo per share with a closure of register date of 30 August 2019 and
payment of 2 September 2019, the bank wishes to notify the Nigerian Stock
Exchange and the investing public that the payment date for the dividend has
been changed to Wednesday, 4 September 2019.”
The backstory: Zenith Bank Plc declared an interim dividend
of 30 kobo per 50 kobo ordinary share to be paid on Monday, September 2, 2019,
to the shareholders whose names appear on the Register of Members as at the
close of business on the 29th of August, 2019, according to a Nairametrics
report.
Zenith bank
Financial results: The company’s gross earnings went from
N322.2 billion in 2018 to N331.6 billion in 2019.
The bank’s Profit Before Tax stood at N111.7 billion on 30th
of June 2019 as against N107.4 billion recorded in the same period in 2018.
Profit After Tax stood at N88.9 billion in 2019 as against
N81.7 billion recorded in the same period in 2018.
Total assets stood at N5.8 trillion in 2019 compared to N5.9
trillion in 2018.
Understanding dividend: A dividend is a payment made by a
company to its shareholders, usually as a distribution of profits. When a
company earns a profit or surplus, it reinvests a portion of the profit in the
business (retained earnings) whilst paying a portion as dividends to the
shareholders.
Distribution to shareholders may be in cash (usually a
deposit into their bank accounts) or the issuance of further shares, otherwise
known as shares repurchase. But this is usually done if the company has a
dividend reinvestment plan.
In other words, a dividend is allocated as a fixed amount
per share with shareholders receiving a dividend in proportion to their
shareholdings. For the joint-stock company, paying dividends is not an expense,
rather, it is the division of after-tax profits among shareholders.
