Zenith Bank Plc (NGX: ZENITHBANK) in a press issued on Wednesday, clarified its position regarding the recent circular from the Central Bank of Nigeria (CBN) concerning regulatory forbearance on Single Obligor Limit (SOL) and other credit facilities.
The bank assured stakeholders that it expects to exit all CBN forbearance arrangements by the end of the first half of 2025 and remains confident in its ability to pay dividends to shareholders in the current year.
The bank’s further stated that its exposure under the SOL forbearance is limited to a single obligor and is anticipated to be brought within the applicable regulatory limit on or before June 30, 2025.
Zenith Bank in the statement noted that it has successfully raised and surpassed the new regulatory capital requirement of N500 Billion.
The press release titled “RE: TEMPORARY SUSPENSION OF DIVIDEND PAYMENTS, BONUSES AND INVESTMENTS IN FOREIGN SUBSIDIARIES read in part, “Zenith Bank has successfully raised and surpassed the new regulatory capital requirement of N500 Billion.
“The Bank’s exposure under the SOL forbearance
relates solely to a single obligor. We are confident that this exposure will be brought within the applicable regulatory limit on or before 30 June 2025.
“With respect to the forbearance granted on other credit facilities, the Bank confirms that this applies to only two (2) customers.
“We have made substantial provisions in respect of these facilities and have taken appropriate and
comprehensive steps to ensure full provisioning by 30 June 2025. Upon completion, the Bank will no longer be under any forbearance arrangements in this regard.
“The Bank expects to have exited all CBN forbearance arrangements by the end of the first half of 2025. Accordingly, we remain confident that the Bank will satisfy all relevant conditions to enable it pay dividend to shareholders in the current year.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
