Nigerian banking tycoon Jim Ovia to pocket $3.7-million interim dividend from Zenith Bank

Nigerian multimillionaire businessman Jim Ovia will pocket N1.52 billion ($3.7 million) from his stake in Zenith Bank Plc.

The dividend will be paid from the bank’s N106.1-billion ($257.8 million) profits earned in the first half of 2021, despite challenges in its operating environment that led to a six-percent decline in interest income.

Zenith Bank, Nigeria’s second-largest lender in terms of market capitalization, disclosed on Aug. 28 that it recorded a three-percent growth in its profits from N103.8 billion ($252.2 million) in the first half of last year to N106.1 billion ($257.8 million).

The single-digit growth in the bank’s earnings was delivered off the back of a 26-percent decrease in interest expenses, which mitigated a six-percent decline in interest income.

In line with its resilient financial results, the board recommended an interim dividend of N9.4 billion ($22.8 million), which translates to a payout of N0.30 ($0.00073) per share on all 31,396,493,786 ordinary shares held by shareholders.

The decision, which aligns with the bank’s tradition, will set its founder, Ovia, on course to earn an interim dividend of N1.52 billion ($3.7 million) on Sept. 20.

The interim dividend payment this month will take his total direct earnings in 2021 to N11.1 billion ($27.05 million), as the multimillionaire banker previously received a final dividend of N9.58 billion ($23.35 million) from the bank this year.

As of press time, 5:30 PM (UTC), Sept. 1, shares in Zenith Bank were worth N24 ($0.0583) per share, 21-basis points higher than its opening price on the Nigerian Exchange this morning.

At the current price, the market value of Ovia’s equity stake, which amounts to 5,072,104,311 ordinary shares, is valued at  N121.7 billion ($295.8 million).

Since the start of the year, the multimillionaire has suffered a loss of N4.1 billion ($9.9 million) from his Zenith Bank stake.