Zenith Bank And GTBank Considers Paying Interim Dividends Despite COVID-19


Zenith Bank, one of the tier-1 bank’s in Nigeria will be having a Board of Directors meeting on the 23rd of July, 2020 towards the consideration of the H1 2020 audited financial statement. According to a notice that was sent by the Bank to the Nigerian Stock Exchange, “the proposal for the recommendation of interim dividend for shareholders” will be discussed. Similarly, one of the other tier-1 banks, GTBank said in a statement to the NSE that “issues relating to half-year dividend may also be discussed” when its board of directors meets later this month.

This is not much of a surprise to shareholders and the market in general. The two most profitable banks in Nigeria Zenith Bank and GTBank, have always paid interim dividends to their shareholders.

However, as a way of reacting to the bearish market, by cutting down on costs, in view of COVID-19 and its attendant economic implication, analysts had earlier predicted that many banks may hold off on dividend payments due to the uncertainty hitting the market. 

Start Your Business In 30 Days

Seeing that Zenith Bank and GTBank, against the backdrop of the pandemic economy, are considering interim dividends is amazing. However, a lot of the Banks across the globe has been advised on dividend payouts while some were advised not to pay dividend at all.

How Other Banks Across The World Are Treating Their Investors As Regards Dividends

Furthermore, putting this in perspective, as regards conserving capital amid the pandemic, the Economic Times reported sometime in April that the Reserve Bank of India advised Indian banks to suspend dividend payouts. 

In addition, regulators in the European banking system also banned European banks from paying any dividend in 2020. However, it was slightly different in Australia, as the banks were advised to slash their dividend payouts. 

Meanwhile, in the United States, according to the New York Times. The Federal Reserve announced in June that it will temporarily restrict dividend payouts by some of the country’s biggest banks.

The COVID-19 pandemic is expected to adversely impact different sectors of the Nigerian economy, including the financial institutions. Meanwhile, the Banking Industry Risk Indicator (BIRI) in Nigeria stands at a score of 12.14 out of 100. This analysis was recently carried out by Fitch Solutions.

A closed period for trading in Zenith bank’s stock will start from July 6th, 2020. The closed period will last until 24 hours after the company’s half-year 2020 financial report is released to the public.

At Entrepreneurs.ng, we put businesses on the world map and increase their visibility and revenue. Contact us today to get started.



Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Business Registration

Most Popular

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Related Posts

How to start internet business

How To Start a Successful Internet Business

The Internet offers vast opportunities for business visibility and reach. Across the globe, businesses of various sizes and types are utilizing these chances to expand and extend their reach beyond local boundaries into new territories. Are you contemplating starting a business? Then, consider starting an internet business. How do you

Best WordPress Plugins

Where To Find The Best WordPress Plugins

WordPress, a versatile content management system, reigns as the go-to choice for building websites due to its adaptability. It operates on an open-source platform, allowing extensive modifications using plugins. These plugins, essential for feature augmentation, hold the key to unlocking your site’s true potential. What are the best WordPress plugins?

How to Improve Operational Efficiency and Productivity in an Organisation

How to Improve Operational Efficiency and Productivity in an Organisation

In today’s interconnected world where businesses compete fiercely, organizations need to be super efficient. Being efficient means doing things in a smart way that saves time and resources while still delivering good results. Operational Efficiency and Productivity in an Organisation is the central process that drives growth and stability in

AI in social media marketing

How to Leverage AI in Social Media Marketing

Are you ready to boost your social media marketing game using AI? How exactly can you harness AI for your social media marketing advantage? To kick things off, consider this: there are over 4.60 billion users on social media platforms. Social media companies continually strive to keep up with this

Scroll to Top

Join Entrepreneurs Family!

Get access to FREE business insights and funding opportunities daily.

Entrepreneurs Sign Up