Zenith bank's growth trajectory was underpinned by robust earnings expansion, driven by impressive gains in both interest and non-interest income streams, benefitting from the high-interest rate environment. However, the expansion came with rising operational costs, as the bank faced increased personnel expenses alongside higher fuel and maintenance costs. These factors contributed to a substantial uptick in operating expenses, reflecting the broader inflationary pressures affecting the econom...
Zenith Bank Plc recently published its 9M:2024 unaudited financial results, recording a 118.17% YoY expansion in Gross Earnings to NGN2.90trn. This is on the back of increase in both interest income (+190.21% YoY to NGN1.95trn) and non-interest income (+44.72% YoY to NGN952.49bn) in the period. Meanwhile, Operating Expenses surged 113.46% YoY to NGN656.07bn owing to rising personnel costs and fuel & maintenance. Profit Before Tax (PBT) and Profit After Tax (PAT) increased by 98.57% and 90.54% to...
Impressive Performance Riding on Core & Non-Core Income Zenith Bank Plc published its H1:2024 interim financial results, recording a 120.03% YoY expansion in Gross Earnings to NGN2.05trn. This is on the back of increase in both interest income (+176.69% YoY to NGN1.15trn) and non-interest income (+72.50% YoY to NGN951.94bn) in the period. Meanwhile, Operating Expenses surged 115.30% YoY to NGN472.08bn owing to rising personnel costs and fuel & maintenance. Profit Before Tax (PBT) and Profit Aft...
Zenith Bank released the audited Full-year results for 2023, revealing a robust topline performance. Gross Earnings, which exceeded our 2023FY estimates, grew by 125.45% YoY to NGN2.13trn on the wheels of increased interest and non-interest income. For context, Interest Income climbed 111.91% YoY to NGN1.15trn while Non-Interest Income grew significantly by 143.49% YoY to NGN987.08bn. United Bank for Africa Plc. audited Full-year results for 2023 showed an impressive topline and bottom-line per...
A director at Zenith Bank bought 4,849,576 shares at 35.951NGN and the significance rating of the trade was 63/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearl...
Zenith Bank Plc published its H1:2023 interim financial results, recording a 138.51% YoY expansion in Gross Earnings to NGN931.12bn. This is on the wheels of a tremendous increase in non-interest income (+238.47% YoY to NGN551.84bn) in the period. Interest Income also supported growth in Gross Earnings as it grew by 71.86% YoY to NGN415.43bn. Meanwhile, Operating Expenses rose by 22.77% YoY to NGN219.27bn owing to rising personnel costs. Profit Before Tax (PBT) and Profit After Tax (PAT) increas...
Gross earnings rose 40.97% YoY to NGN269.99bn (slightly exceeding our expectation at about 27% of our 2023FY estimates) on the wheels of increased interest and non-interest income. Interest Income climbed 51.63% YoY to NGN191.63bn while Non-Interest Income grew by 20.30% YoY to NGN78.36bn. On the other hand, Operating Expenses rose 19.50% YoY to NGN99.21bn owing to rising energy costs and regulatory costs. Consequently, Net Profit Margin slipped by 5.94% to 24.45% in the period. Profit Before T...
Zenith Bank released the audited Full-year results for 2022, revealing a strong topline performance. Gross Earnings, which exceeded our 2022FY estimates, grew by 23.51% YoY to NGN945.55bn on the wheels of increased interest and non-interest income. For context, Interest Income climbed 26.33% YoY to NGN540.17bn while Non-Interest Income grew by a notable 19.95% YoY to NGN405.39bn. On the flip side, Operating Expenses surged 17.32% YoY to NGN339.69bn owing to rising energy costs and regulatory cos...
In its recently released 9M:2022 financials, Zenith Bank Plc posted a strong topline performance. Gross Earnings rose by 19.65% YoY to NGN620.57bn (on track to slightly exceed our 2022FY estimates) on the wheels of increased interest and non-interest income. For context, Interest Income climbed 26.52% YoY to NGN390.76bn while Non-Interest Income grew (+9.53% YoY) to NGN229.82bn. On the flip side, Operating Expenses surged 16.59% YoY to NGN255.23bn owing to rising energy costs amongst other facto...
PBT grows 11% y/y amid increased impairments In its recently released H1’22 financials, ZENITHBANK saw Gross Earnings rise by 17% y/y to ₦404.8 billion, 2% above our estimate of ₦397.4 billion. The improved earnings came about after Interest Income grew 19% y/y to ₦241.7 billion (Vetiva: ₦252.7 billion), thanks to a 21% y/y increase in receipts from loans and advances. Meanwhile, Non-Interest Revenue (NIR) grew 18% y/y to ₦148.9 billion (Vetiva: ...
Nigeria’s government is scrapping plans for a eurobond issuance in June (announced in April) due to unfavourable market pricing and missed approval deadlines. The US$950mn issuance from Nigeria would have been the last international bond from its 2021 budget, after the authorities issued US$1.25bn in March this year. The announcement comes only a few weeks after the Ivorian government cancelled its US$1bn international bond plan for similar reasons, and instead opted to sell bonds in the regi...
Interest Income supports Q1 earnings In its Q1’22 financial statements, ZENITHBANK reported a 22% y/y rise in Gross Earnings to ₦191.5 billion (Vetiva: ₦201.1 billion), after Interest Income grew 25% y/y to ₦126 billion (Vetiva: ₦111.6 billion), while Non-Interest Revenue (NIR) grew 12% y/y to ₦57 billion (Vetiva: ₦81.5 billion). The impressive Interest Income growth was driven by a 36% rise in income from loans to customers, as the bank’s...
Zenith Bank’s FY 21 after-tax profit was up 6% yoy, ahead of our expectations for a 4% decline, and Bloomberg consensus (1% decline). The banking group had a strong finish in Q4 21, reporting improved net interest income on the back of a 10% qoq loan book expansion and its favourable low-cost funding. The main driver of performance was a surge in the group's trading and FX gains, which management attributed to gains on its derivatives. Despite the profit growth, Zenith Bank’s profitability me...
FY’22 profit forecast upgraded after 2021 outperformance In its audited FY’21 earnings, ZENITHBANK reported a 10% y/y growth in Gross Earnings to ₦766 billion (Vetiva: ₦698 billion). This growth came on the back of a 23% y/y jump in Non-Interest Revenue (NIR) to ₦309 billion, which was mainly a result of a 38% y/y surge in trading gains to ₦167 billion. Meanwhile, Interest Income grew modestly by 2% y/y to ₦428 billion as the bank’s income from inte...
In this report, we highlight four key trends that will shape Nigeria’s banking sector in 2022. We also roll our models forward to 2026 and make changes to our valuation inputs, by raising our cost of equity to better reflect higher interest rates compared to 2020 and the appropriate risk premium for Nigerian equities. Overall, we expect our coverage to deliver an average ROE of 14.5% in 2022, vs 14.8% previously. The marginal drop in our forecast is based on slower expected growth in margins,...
Nigeria's banks face three main headwinds in 2022: 1) continued regulatory hurdles; 2) declining profitability; and 3) the growing threat of fintechs and telcos. The banks that succeed will be those that can amend their strategy and adapt to the new environment. In this report, we highlight two banks – Stanbic IBTC and Standard Chartered – that have done just that, moving to embrace financial technology and digitalisation. STANBIC IBTC BUILDING ITS OWN FINTECH The diversified financial holdin...
Zenith Bank’s Q3 numbers missed our expectations, with the banking group’s EPS down 2% to NGN1.73, below our NGN1.88 estimate. The major source of underperformance was net interest income, which grew 10% (versus the expected 19%), as the bank recorded lower interbank lending activity than we had expected, although there was solid growth in income from customer loans (up 17% yoy). Moreover, the group's loan impairment charges for Q3 were worse than expected, at NGN6bn, compared with the NGN670...
Zenith Bank's Q2 21 results showed flat growth (-0.5% yoy) in net attributable profit to NGN53bn, which was slightly ahead of our expectations of NGN52bn. Across the group's revenue lines, net interest income was up 1% yoy vs 8% estimated, as we expected its robust liquidity position to support increased income from inter-bank lending and its favourable funding mix to keep funding costs low. However, a decline in income from both inter-bank lending and debt securities lowered growth in net in...
Profits expected to grow 8% y/y on strong NIR ZENITHBANK recently released its H1’21 financial results, posting flat Gross earnings of ₦346 billion. This came amidst a 6% y/y decline in Interest Income to ₦204 billion, although Net Interest Income actually grew by 2% y/y to ₦160 billion, thanks to a 26% y/y decline in Interest Expense after cost of funds moderated to 1.3% in the period (H1’20:2.2%). However, Non-Interest Revenue (NIR) grew by 9...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.