Zenith Bank was established in May 1990. It became a public limited company in July 2004, and had an initial public offering on the Nigerian Stock Exchange (NSE) on October 21 of that year.
The bank’s expansion is not limited to Nigeria as Zenith became the first Nigerian bank in 25 years to be licensed by the Financial Services Authority (FSA) in the UK for the commencement of banking operations by Zenith Bank (UK) Limited in April, 2007.
It also has its presence in Ghana, Zenith Bank (Ghana) Limited, Sierra Leone, Zenith Bank (Sierra Leone) Limited, Gambia, Zenith Bank (Gambia) Limited and a representative office in Johannesburg, South Africa and Beijing, China.
World Finance adjudged Zenith Bank as best bank in Cooperate Governance (2012) in Nigeria while FTSE Global Markets named Zenith bank as of one the 20 Global Super Brands (2012).
The bank has over 500 branches spread across the country. It also controls a significant share of the high end cooperate client in the strategic sectors of the Nigeria economy.
Zenith bank has 31.4 billion shares outstanding, with shareholder funds standing at N482.5 as at September 2013-which is one of the strongest in the banking industry.
Financial performance for Third Quarter 2013
Zenith bank grew gross earnings by 11 percent year on year(YoY) for the nine month period to September (Q3) 2013 to N255.3 billion from N229.1 billion recorded in the corresponding period of September, 2012.
Net interest income soared by 16 percent to N138.9 billion in the third quarter of September 2013 from N119.7 billion Q3 2012, while interest income climbed to N190.9 billion(14 percent increase) from N168.2 a year earlier.
The bank recorded a 10 percent year on year (YOY) increase in profit before tax (PBT) to N83.0 billion for the nine months through September 2013 compared to N75.2 billion a year earlier.
The banks earnings and impressive results came despite the effect of the new CRR regime.
Zenith bank’s Net interest margin increased for the third quarter 2013 to 9.8 percent from 8.4 percent in the corresponding period Q3 2012; this was on the back of efficient balance sheet management (optimal resource allocation and assets pricing).
The bank Cost to Income Ratio declined QoQ to 56.42 percent (June 2012) but increased marginally YoY (September 2013) to 55.84 percent compared to 55.07 percent for Q3 2012.
The increase in Cost to Income Ratio was due to the downward review of Commission over Tax (COT) and other bank tariffs, increase in AMCON charge.
Earnings per share EPS increased by 3 percent to 202k from 200k in HY 2012.
The Return on Average Equity (ROAE) reduced to 19.7 percent Q3 2013 from 20.9 percent Q2 2012, while Return on Average Assets (ROAA) shrank to 3.4 percent Q3 from 3.57 percent in Q2 2012.
The liquidity and capital adequacy ratios stood at 63.1 percent and 28.3 percent respectively, higher than the minimum regulatory requirement of 30 percent and 15 percent.
Loans and advances grew by 15 percent YoY and 3.7 percent QoQ, to N1.11 trillion (N964.8 billion September 2012 and N1.07 trillion June 2013).
The customer and other deposits were up 18 percent YoY and 1.5 percent Quarter-on-Quarter QoQ, respectively, to N2.03trillion (N1.72trillion September 2012 and N2 trillion June 2013).
Zenith bank’s total assets grew by 9.5 percent for the nine month period through 2013 to N2.85 trillion compared to N2.45 trillion 16.3 percent for the corresponding period 2012, while Non – performing loans to total loans ration fell in Q3 to 3.1 to 3.2 percent a year earlier- which is one of the lowest in the industry.
Share Performance and Outlook
The bank’s market price on the floor of the Nigeria Stock Exchange as at November 28 2013 was N21.30.The shares have gained by 33 percent in the past year.
Zenith bank had a Price Earnings Ratio (P/E Ration) of 6.8 xs and a Price-to-book Ratio (PB Ratio) of 1.45.
The bank had total market capitalization of N666.2 billion as at November 26 2013. Zenith bank is known for consistently returning good dividends to its investors. The bank paid a dividend per share of 95 kobo to its shareholders for HY11 and 160 kobo per share in HY12.
wow, zenith are making profit
ReplyDeletewow that is my bank
ReplyDelete