Amid fears across Nigeria’s capital market over the directed by the country’s central bank directing banks under one form of forbearance or the other to temporary suspend payment of dividend and bonuses, and investment in foreign subsidiaries, Zenith Bank Plc, on Wednesday assured that it has all it takes to reward shareholders by the end of half-year.
In a notification to the Nigerian Exchange Limited titled: Re: Temporary Suspension of Dividend Payments, Bonuses and Investment In Foreign Subsidiaries,” referencing a recent circular by the CBN, regarding regulatory forbearance in respect of Single Obligor Limit (SOL) and other credit facilities, Zenith Bank said has already “taken appropriate and comprehensive steps to ensure full provisioning by 30 June 2025.”
In the notification by Michael Osilama Out, its company secretary, Zenith Bank said that upon completion of the ongoing efforts, it will no longer be under any forbearance arrangements, and “expects to have exited all CBN forbearance arrangements by the end of the first half of 2025.”
It also recalled the recent successful capital raising exercise that raised its capital base beyond the N500 billion regulatory requirement.
Exposure under the SOL forbearance, the statement added, relates solely to a single obligor, expressing confidence that this exposure will be brought within the applicable regulatory limit on or before 30 June 2025.
With respect to the forbearance granted on two other credit facilities, the bank said it has made substantial provisions in respect of both customers, assuring that it remains confident of satisfying “all relevant conditions to enable it pay dividend to shareholders in the current year.
