By 
Zenith Bank Plc is actively preparing to meet the Central Bank of Nigeria’s (CBN) newly established N500 billion capitalization requirement, as revealed in a statement accompanying its 2023 annual report.
In March, the CBN set forth increased capital requirements for banks, requiring commercial banks with international authorization to have a minimum capital base of N500 billion. The requirements for national and regional authorization are N200 billion and N50 billion respectively.
Currently in the process of restructuring into a holding company, Zenith Bank noted, “In 2024, the group will finalize its transition to a holding company structure, which will enable it to capitalize on emerging opportunities in the fintech sector and enhance its digital and retail banking services.”
The bank is taking immediate steps to comply with the N500 billion equity capital mandate necessary to retain its international authorization, as mandated by the CBN. This move aims to fortify its market presence and ensure continued growth and value for its stakeholders.
According to CBN guidelines, which recognize only share capital and share premium as components of a bank’s capital base, Zenith Bank needs to raise an additional N229.26 billion to reach the new capital threshold by 2026. As of December, the bank’s share capital and share premium were reported at N15.69 billion and N255.05 billion, respectively.
Zenith Bank reported a significant performance increase in 2023, with gross earnings soaring 125% to N2.13 trillion up from N945.6 billion in 2022. Profits before tax and after tax also saw remarkable rises, with pre-tax profits climbing 180% to N796 billion from N284.7 billion in 2022, and net profits after tax growing 202% to N676.9 billion from N223.9 billion the previous year.
The bank attributes the increase in gross earnings primarily to gains in both interest and non-interest income.
Zenith Bank also announced a substantial dividend payout, proposing a final dividend of N3.50 per share, which brings the total dividend for the year to N4.00 per share. If approved, this will result in a payout of approximately N109.89 billion to shareholders.
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