Zenith Bank rewards shareholders with N141bn dividend, Jim Ovia gets N25.4bn
Jim Ovia, the chairman and founder of Zenith Bank, is set to receive a staggering N25.4 billion in dividend payouts for the 2024 financial year, following the bank’s record-breaking performance.
The payout, scheduled for April 15, 2025, comes as Zenith Bank reported a 52.5% increase in profit after tax, reaching N1.03 trillion compared to N676.9 billion in 2023.
The surge in profitability has led the bank to declare a total dividend of N5.00 per share for shareholders.
Zenith Bank’s Dividend Boost
According to the bank’s financial statements for the year ending December 31, 2024, the Board of Directors has proposed a final dividend of N4.00 per share.
This, combined with the earlier N1.00 per share interim dividend, brings the total dividend payout to N5.00 per share—an increase from the previous year’s N4.00 per share.
Ovia, who holds 3,552,949,395 direct shares and 1,529,851,344 indirect shares, totaling 5,082,800,739 shares, will receive a dividend payout of N25,414,003,695 based on the N5.00 per share distribution.
Shareholder Payouts and Market Impact
Zenith Bank’s total dividend payout for 2024 has been set at N141.28 billion, up from N106.74 billion in 2023, reflecting the bank’s strong earnings growth.
As per Nigerian tax regulations, these dividends are subject to a 10% withholding tax.
The bank’s earnings boom was driven by a surge in gross revenue, which climbed to N3.9 trillion from N2.39 trillion in 2023. A key driver of this growth was interest income, which more than doubled to N2.7 trillion compared to N1.14 trillion the previous year.
CBN’s High Interest Rates Drive Banking Sector Gains
Zenith Bank, like other Nigerian banks, has significantly benefited from the Central Bank of Nigeria’s (CBN) tight monetary policies, which have kept interest rates high in a bid to curb inflation. The bank’s net interest income rose sharply to N1.73 trillion, bolstered by strong earnings from loans, advances, and investments in government securities, such as treasury bills.
The majority of Zenith Bank’s revenue was generated within Nigeria, accounting for N3.5 trillion out of its total N3.97 trillion net consolidated revenue. Meanwhile, the bank’s African and European operations also recorded significant growth, with revenue climbing to N510 billion from N281.1 billion in the previous year.
Outlook for 2025
Zenith Bank’s strong financial results reinforce its position as one of Nigeria’s most profitable banks. With economic conditions remaining challenging, the bank’s ability to sustain earnings growth will depend on factors such as interest rate policies, foreign exchange stability, and overall economic recovery.
