Zenith Bank Plc, Headquarters
Zenith Bank Plc Monday reported impressive financial results for the second quarter (Q2) ended June 30, 2011 with profit after tax(PAT) rising by 44 per cent.
The results made available to stockbrokers during trading by the Nigerian Stock Exchange (NSE) showed a gross earnings of N122.84 billion, up by 27 per cent from N96.85 billion in corresponding period of 2010.
Pre-tax profit rose by 38.2 per cent to N35.05 billion from N25.34 billion in the 2011, while profit after tax grew by 44 per cent from N21.3 billion to 30.67 billion in 2011.
Also, margins firmed strongly as pre- and post- tax margins rose from 26.16 per cent and
21.99 per cent 2010 to 28.53 per cent and 24.97 per cent in 2011.
Pre-tax profit rose by 38.2 per cent to N35.05 billion from N25.34 billion in the 2011, while profit after tax grew by 44 per cent from N21.3 billion to 30.67 billion in 2011.
Also, margins firmed strongly as pre- and post- tax margins rose from 26.16 per cent and
21.99 per cent 2010 to 28.53 per cent and 24.97 per cent in 2011.
This, analysts at Cordros Capital Limited, said was a strong indication of the bank’s profitability and efficiency.
The bank’s total assets increased from the N2.608 trillion reported in 2010 to N2.847 trillion as at Q2 2011.
“We forecast that margins will remain upbeat for the financial year end 2011, or at worst remain flat across the board, given the on-going rising rate environment. We also believe that the bank’s non-performing loans (NPLs) should continue their downward trend. We forecast Zenith Bank’s full year 2011 EPS at N1.68 coming off the back of a projected PAT of N52.752 billion. We hereby place a six months BUY on Zenith Bank Plc with a target price of N21.15,” Cordros Capital said.
The Chairman of Zenith Bank Plc, Mr. Steve Omojafor, had told shareholders at the Annual General Meeting(AGM) of the bank recently that even in the face of very challenging operating environment, the bank had maintained its culture of outstanding performance and industry leadership.
The bank’s total assets increased from the N2.608 trillion reported in 2010 to N2.847 trillion as at Q2 2011.
“We forecast that margins will remain upbeat for the financial year end 2011, or at worst remain flat across the board, given the on-going rising rate environment. We also believe that the bank’s non-performing loans (NPLs) should continue their downward trend. We forecast Zenith Bank’s full year 2011 EPS at N1.68 coming off the back of a projected PAT of N52.752 billion. We hereby place a six months BUY on Zenith Bank Plc with a target price of N21.15,” Cordros Capital said.
The Chairman of Zenith Bank Plc, Mr. Steve Omojafor, had told shareholders at the Annual General Meeting(AGM) of the bank recently that even in the face of very challenging operating environment, the bank had maintained its culture of outstanding performance and industry leadership.
According to him, the bank remains committed to delivering superior returns to its shareholders. Shareholders of the bank received a dividend of N26.6 billion, which translates into 85 kobo per share for the year ended December 31, 2010.
Meanwhile, despite the results coming from the banking sector, investors’ demand for equities remained weak at the stock market yesterday, leading to decline in the NSE All-Share Index and market capitalisation.
Meanwhile, despite the results coming from the banking sector, investors’ demand for equities remained weak at the stock market yesterday, leading to decline in the NSE All-Share Index and market capitalisation.
Both indicators, which have been sliding since the beginning of July had witnessed a rebound last Friday. However, the positive performance could not be sustained Monday as the index fell by 0.50 per cent to close at 23,711.90, while the market capitalisation of equities shed N38 billion to close at N7.582 trillion.
Twenty-nine stocks lost value as against 19 that added value, while investors traded 230.923 million shares worth N1.954 billion in 4,218 deals.
Twenty-nine stocks lost value as against 19 that added value, while investors traded 230.923 million shares worth N1.954 billion in 4,218 deals.
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