The dividend, which translates to N1.77 per share, was paid out of N129.65 billion recorded for the year.
The shareholders gave the approval at the Annual General Meeting held in Lagos.
In all, the bank paid a total dividend of N63.422 billion, having paid an interim dividend of N7.849 billion before now.
In approving the dividend, the shareholders commended the board, management and staff for growing its profit after tax by 23 per cent from N105.531 billion in 2015 to N129.65 billion in 2016.
The bank ended the year with gross total assets N4.739 trillion, up from N4 trillion in 2015.
Addressing the shareholders, the Chairman of the Zenith Bank Plc, Jim Ovia, said despite the challenging operating environment, the bank was able to fully exploit the available opportunities to post the impressive results.
According to Ovia, in line with its commitment to delivering superior returns to its much-valued shareholders, the bank ensured that a good chunk of the profit is set aside for them.
He said: “In this regard, we have declared and paid you an interim dividend of 25 kobo per share in the course of 2016 financial year.
“We hereby propose a final dividend of 177 kobo per share.
“This brings the total dividend for the year ended December 31, 2016 to 202 kobo per share as against 180 kobo per share paid he previous year.”
Ovia stated that even in the face of a very challenging operating environment, Zenith Bank has maintained its culture of outstanding performance and industry leadership.
He said: “As a bank, we are monitoring developments both in the local and global economy and applying pragmatism and dynamism as appropriate.
“Our strategy and approach to the pursuit of financial inclusion and sustainability gives us a lot of competitive advantage to explore even new frontiers in the market.”
Speaking in the same vein, the Group Managing Director/Chief Executive Officer of Zenith Bank, Peter Amangbo, said as an institution of well-primed people, the bank relied on a its pool of exceptional staff to make sound and timely decision and addressed issues in a manner that anticipated developments and demonstrated excellent understanding of the dynamics of the market and economy in 2016.
Amangbo said: “We shall continue to demonstrate extraordinary commitment to our customer s while maintaining focus on all the areas fundamental to adding value to our partnership.”
Looking ahead, Amangbo said although 2017 will come with its challenges and opportunities, “but I am confident that our determination, resolve and rare commitment to customer as well as our adaptive ability will ensure resounding results”.