By Ayomide Otitoju
Zenith Bank Plc has ignited fresh momentum on the Nigerian Exchange (NGX) after its board of directors raised interim dividends by 25%, a move that contrasts with peers cutting back.
Trading data from the NGX showed that the financial services giant’s market capitalization expanded by ₦240.26 billion following the release of its half-year results and dividend announcement. Its share price climbed to ₦69.85 as 38.97 million units worth ₦2.72 billion exchanged hands on Friday, driving year-to-date returns to 56%.
The rally—over 9% week-on-week—lifted Zenith Bank’s market value to ₦2.87 trillion, underpinned by investor optimism in its resilience despite tighter Central Bank policies.
In its corporate action, the bank declared an interim dividend of ₦1.25 per share, payable on October 10, one week after the qualification date. Analysts at Atlass Portfolio Limited and Afrinvest Securities Limited project further upside potential ranging between 18% and 41.7%, citing strong fundamentals.
“Zenith Bank remains one of the most attractive stocks in the banking sector,” Afrinvest noted, revising its target price after the lender surpassed its earlier benchmark of ₦42.90.
The latest surge comes despite a marginal slide in net income linked to regulatory-induced reporting delays. Equity analysts, however, highlighted the bank’s strong liquidity and capital buffers as key drivers of its ability to sustain shareholder payouts.
By maintaining the highest interim dividend among its peers, Zenith Bank has reinforced its reputation as a cash-rich lender with robust earnings capacity.
