Zenith Bank backs down on plan to raise N100bn

The board of directors and management of Zenith Bank on Wednesday stepped down the consideration for a new capital raising by the bank, putting a lid on the bid to raise N100 billion.

While the resolutions to authorise the board of directors to raise the new capital were part of the annual general meeting’s notices on Wednesday, the board of the bank stepped down the resolutions.

Market analysts said the withdrawal of the capital raising resolution might not be unconnected with the current stock market downtrend, especially with the undervaluation of Zenith Bank and the liquidity crunch affecting the capital market.

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Meanwhile, shareholders of Zenith Bank approved final dividend of N55.573 billion, bringing the total dividend for the year ended December 31, 2016 to N63.422 billion. The shareholders gave the approval at the Annual General Meeting (AGM) held in Lagos.

While approving the dividend, the shareholders commended the board, management and staff for growing its profit after tax by 23 per cent from N105.531 billion in 2015 to N129.65 billion in 2016. The bank ended the year with gross total assets N4.739 trillion, up from N4 trillion in 2015.

Addressing the shareholders, Chairman of the Zenith Bank Plc, Mr. Jim Ovia said despite the challenging operating environment, the bank was able to fully exploit the available opportunities to post the impressive results.

 

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