Posted by By The Sun Publishing on
Zenith Bank Plc has in the first quarter of the 2006/2007 financial year posted another impressive result with fantastic performance on all indices.
Zenith Bank Plc has in the first quarter of the 2006/2007 financial year posted another impressive result with fantastic performance on all indices.
A cursory review of the result shows that gross earnings and profit before tax increased by N19.6 billion, representing 58 per cent and N5.2 billion, which is 73 per cent respectively.
This is against the N12 billion and N2.4 billion recorded over the same period of last financial year respectively. This also represents 17 per cent and 30 per cent increase over the forecast gross earnings and profit before tax respectively
Also, the bank in the period under review posted a profit after tax of N4.2 billion as against the N2.4 billion it garnered in the same period last year.
This result indicates that the bank's strategies are beginning to yield dividend and incremental gains in operational efficiency.
The bank's net profit margin has also considerably improved from 24 kobo per 100 kobo generated in earnings last year to 27 kobo per 100 kobo in this quarter.
The result was hailed by members and investors as outstanding, as it shows the ability of Zenith Bank to sustain its performance pedigree and continually meet the expectations of shareholders.
Zenith Bank shares, analysts agree, hold a hidden value with some arguing that given the bank's price earning ratio, it ought to be selling for more than N21 per share. PE ratio, obtained by dividing the Market Price by the Earning per Share, is one of the true measures of hot stocks.
They believe that given the trend of performance, the bank was on course to improve on the results in the remaining period of the financial year.
Already, investors who bought into Zenith Bank when it had its Initial Public Offering (IPO) in July, 2004 have enjoyed a capital appreciation of over N6.10 for every share purchased in just 14 months. This is in addition to a dividend of N6.6 billion or N1.10k per share paid out in August 2006, the highest by any bank in that financial year.
The bank's impressive growth pattern and performance over the years have earned it excellent ratings from local and international agencies. Fitch Ratings has for five consecutive years rated Zenith Bank AA- (long term) and F1+ (short term) and indicated that the ratings given reflect its strong domestic franchise, good asset quality and sound earnings record. Agusto and Co., Nigeria's foremost rating agency, has for the sixth consecutive year rated Zenith Bank Triple Aaa saying the bank is a financial institution of impeccable financial condition and overwhelming capacity to meet obligations as and when they fall due.
These two ratings and endorsements are the highest and most consistent ratings ever given to any Nigerian bank. The bank has maintained one of the best assets qualities in the banking industry as evident in the low ratio of non-performing loans to total loans of 1.7% as at 30 June, 2005 compared to the industry average of about 18%
With this result shareholders will rest assured of an outstanding financial performance at the end of the current financial year.