Zenith Bank Plc has assured its shareholders and investors of plans to meet all requirements to exit the Central Bank of Nigeria’s regulatory forbearance by June 30, 2025. The bank also expressed confidence in meeting dividend expectations for the 2025 financial year.
This announcement comes amid increased scrutiny of Nigerian banks following a recent directive from the CBN. The apex bank has suspended dividend payments and tightened its oversight of banks with outstanding forbearance loans or breaches of the Single Obligor Limit (SOL).
In a June 13 circular, the CBN froze dividends and other capital outflows for banks still relying on regulatory leniency introduced during the economic challenges brought on by COVID-19.
Regulatory forbearance allows banks to keep operating despite falling below required capital levels. It is a temporary measure designed to restructure troubled assets, such as non-performing loans.
In a statement to the Nigeria Exchange Group (NGX) on Tuesday, Zenith Bank explained that its forbearance exposure is tied to a single obligor. The bank said it plans to resolve this exposure and comply with regulatory limits by the end of June. It also clarified that forbearance on other credit facilities involves only two customers, adding that substantial provisions have been made to address these loans.
Zenith Bank emphasised its strong financial position, noting that it has exceeded the new regulatory capital requirement of N500 billion. This, the bank said, ensures it is well-prepared to continue delivering value to shareholders, customers, and other stakeholders.
The bank added that it remains a leader in Nigeria’s financial sector, consistently setting the pace in digital banking, offering solutions that ensure speed, safety, and convenience for its customers.
