By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Zenith Bank Plc Tuesday announced its proposing to up its dividend payout to shareholders of the bank by 9.4 percent (9.4%) in its audited report for the period ended December 31, 2013.

The bank has proposed to pay N1.75 for the 2013 audited year end compared to N1.60 paid in 2012 end; indicating an increase of 9.4%.

Zenith Bank in its corporate action to the Nigerian stock exchange (NSE) said qualification date is March 21, 2014 and closure date is March 24-March 28, 2014.

According to the bank, annual general meeting date (AGM) has been scheduled for April 02, 2014 and payment of the N1.70 dividend will be April 04, 2014.

A review of the 2013 audited report shows that one of Nigeria’s biggest lender, Zenith Bank shows that post-tax profit decreased from N100.681 billion in the audited period of 2012 to N95.318 billion in the review period of 2013; indicating a decrease of -5.3%.

However, pre-tax profit increased from N102.100 billion in 2012 end to N110.597 billion in the review period of 2013; representing an increase in pre-tax profit of 8.3%.

Similarly, gross earnings grew by 14.45% from N307.082 billion in the audited period of 2012 to N351.470 billion in the review period of 2013.

Investment One Research says that the recording of 14.45% increase in gross earnings to N351.47 billion relative to the same period last year, the bank delivered a rather impressive result regardless of the tight regulations in the banking sector.

Investment One Research affirmed that the higher tax charge incurred by the bank this year after the tax credit received the previous year resulted in a 5.3% decline in post-tax profit to N95.32 billion.

While the proposed dividend pay-out of N1.75 per share implies an 8.10% dividend yield.

The share price of Zenith Bank at the opening of trading at the Nigerian bourse on Tuesday was N21.60 and closed at N21.99 per share.