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Investors and capital market operators Monday, received with enthusiasm first quarter financial result of Zenith Bank Plc. The result, which was presented on the floor of the Nigerian Stock Exchange (NSE) covered a period up to September 30, 2005.
Investors and capital market operators Monday, received with enthusiasm first quarter financial result of Zenith Bank Plc. The result, which was presented on the floor of the Nigerian Stock Exchange (NSE) covered a period up to September 30, 2005.
The results show that the bank's gross revenue increased by 56 per cent over the same period last year while profit before taxation increased significantly by 84 per cent.
Gross revenue for the period amounted to N12.4 billion, while profit before taxation was N3.018 billion, indicating a net profit merging of 24 per cent, which is an improvement from 20 per cent recorded in the same period last year.
Put differently, the bank's operational efficiency has improved significantly as it is making a profit of N1 from every N4 of revenue earned, which is a significant improvement from a profit of N12 from every N5 of revenue earned last year.
This strong earnings results is obviously reassuring to all market operators and the investing public that the bank would brace the tape strongly at the end of the current financial year in June 2006.
Zenith Bank remains one of the strongest banks in the banking industry and is expected to maintain the remarkable earnings streak it is known for irrespective of the on-going reforms in the industry. It is set to meet its profit forecasts and dividend promise to its shareholders.
In the last financial year, the bank doled out over N4.2 billion as dividend to its shareholders, which was its first year of listing on the stock exchange.
Stockbrokers and investors believe that with the improved performance of its first quarter result, many are likely to take advantage and shore up their stock value to reap bountifully at the end of the bank's financial year in June.