Zenith Bank held an earnings call last week, to discuss its audited FY 2024 results.

Management touched on a bunch of topics including pausing Holdco plans, returning to its usual dividend payout ratio and stage 2 loans.

Suspending Holdco

Pursuing holdco would have delayed recapitalization. Suspended Holdco to raise capital. After capital raise, focus is on global market expansion and utilization of capital. If the need arises, it would be revisited.

The firm has plans to expand to cote d Ivoire and Senegal.

Income on trading book is a mix of derivative, hedges, transactions. excludes treasury bills and bonds.

On Zenpay

At the advanced stage of concluding the build of Zenpay, the bank’s payment platform. That should be ready by the second quarter of the year.

On stage 2 loans

Most of the stage 2 loans have been restructured, for prudence sake we left them there because we want to attain a reasonable cure period before we think of moving them back.

For the few we have not restructured, placing them in stage 2 offers use an opportunity to make significant impairments. It hasn’t grown significantly because we have grown other loans.

We think we will be out of it by latest the third quarter of the year, when we will get a resolution for most of them.

On dividend payout

For 2024, dividend payout was 20%. Over the last 5 years, Zenith Bank’s cumulative payout has been the highest in the market.

Our dividend payout will continue to push northwards. Albeit 48% where we have been in the previous years.