Zenith Bank set to exit CBN forbearance, assures shareholders on dividends

Zenith Bank Plc confirmed its readiness to exit CBN regulatory forbearance by June 30, 2025, and assured shareholders of meeting dividend expectations

[dropcap]Z[/dropcap]enith Bank Compliance with the Central Bank of Nigeria’s (CBN) regulatory conditions is firmly on track.

Also read: Zenith Bank named ‘Best Bank in Nigeria’ by global finance for fifth time

Zenith Bank Plc, Nigeria’s largest bank by Tier 1 Capital, has assured shareholders and investors of its readiness to satisfy all relevant conditions to exit the CBN’s regulatory forbearance by June 30, 2025.

The bank also expressed confidence in meeting shareholders’ dividend expectations during the 2025 financial year. This announcement offers clarity amid heightened scrutiny of Nigerian banks’ capital health.

This clarification comes in response to a new CBN directive. That directive temporarily suspends dividend payments and tightens oversight for banks with outstanding forbearance related loans or breaches of the Single Obligor Limit (SOL). This measure aims to bolster the financial resilience of the banking sector.

In a statement presented to the Nigeria Exchange (NGX) Group on Tuesday, June 17, 2025, Zenith Bank clarified its position.

Its exposure under the Single Obligor Limit (SOL) forbearance relates solely to a single obligor.

The bank pointed out that it will bring this exposure within the applicable regulatory limit on or before June 30, 2025.

This step demonstrates a focused approach to resolving regulatory concerns.

Furthermore, the bank confirmed that forbearance granted on other credit facilities applies to only two of its customers.

Zenith Bank has made substantial provisions for these facilities and has taken appropriate and comprehensive steps to ensure full provisioning by June 30, 2025.

Upon completing these actions, the bank will no longer operate under any forbearance arrangements.

Zenith Bank also emphasized its strong financial footing. It successfully raised and surpassed the new regulatory capital requirement of N500 billion, placing it in a robust position.

The bank is therefore well positioned to continue delivering value to all its key stakeholders, affirming its stability and capacity for growth.

Zenith Bank continues to distinguish itself within the Nigerian financial services industry. It offers superior service, provides unique customer experiences, and maintains sound financial indices.

The bank has remained a clear leader in the digital space, achieving several firsts in deploying innovative products, solutions, and a range of alternative channels.

These ensure convenience, speed, and safety of transactions for its customers.

The bank’s consistent excellent performance has earned it numerous accolades. These include being recognized as the Number One Bank in Nigeria by Tier 1 Capital for the fifteenth consecutive year in The Banker Magazine’s 2024 Top 1000 World Banks Ranking.

Zenith Bank also received the Bank of the Year (Nigeria) award in The Banker’s Bank of the Year Awards for 2020, 2022, and 2024.

Global Finance World’s Best Banks Awards named it Best Bank in Nigeria from 2020 to 2022, 2024, and 2025.

Euromoney Awards 2023 acknowledged it as Best Bank for Digital Solutions in Nigeria. The bank was also listed in the World Finance Top 100 Global Companies in 2023.

Further recognitions include Best Commercial Bank, Nigeria, for four consecutive years from 2021 to 2024 in the World Finance Banking Awards, and Most Sustainable Bank, Nigeria, in the International Banker 2023 and 2024 Banking Awards.

Additionally, Zenith Bank gained acknowledgment as the Best Corporate Governance Bank, Nigeria, in the World Finance Corporate Governance Awards for 2022, 2023, and 2024.

Ethical Boardroom also named it ‘Best in Corporate Governance’ Financial Services’ Africa for four consecutive years from 2020 to 2023.

The bank’s commitment to excellence led to its naming as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021.

It received the Bank of the Year 2023 and 2024 awards at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards, and Retail Bank of the Year for three consecutive years from 2020 to 2022 and again in 2024 at the BAFI Awards.

The bank also secured accolades as Best Commercial Bank, Nigeria, and Best Innovation in Retail Banking, Nigeria, in the International Banker 2022 Banking Awards.

Zenith Bank earned recognition as Most Responsible Organisation in Africa, Best Company in Transparency and Reporting, and Best Company in Gender Equality and Women Empowerment at the SERAS CSR Awards Africa 2024.

ThisDay Newspaper and New Telegraph Newspaper both named it Bank of the Year 2024. Nairametrics also awarded it Best in MSME Trade Finance, 2023.