March 26, 2012

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Overview

Zenith Bank Plc presented its full year earnings report for the period ended December 31^st 2011 with impressive key performance indices. The bank maintained its leading position in the industry as its gross income came in stronger and more robust so far among its peers.

The bank closed with N244.07billion against N192.48billion recorded in the previous comparable period, indicating 26.80% performance growth. An extended analysis revealed a weaker performance when compared with average performance growth of 28.93% (YoY) experienced in the last two financial years.

More so, similar weakness was observed in the bottom line of the bank as the performance growth closed below 2yrs average performance while there is consistent decline in the bottom-line on quarterly basis throughout the financial year.

The bank closed with 2.88% (QoQ) as against 40.06% recorded in the previous quarter- we want to call management’s attention again to this unimpressive trend as we have highlighted in our previous report.

On the other hand, we commend the 18.11% (YoY) performance growth for Q4 2011 as the bank sustained the profitability growth while we remained optimistic towards improved bottom-line.

Furthermore, we observed that interest earnings and fees and commission contributed immensely to both top line and bottom-line considerably as the bank maintains leverage on strong deposit base to sustain dominance in the money market as stated in the bank’s presentation. This further reveals active posture of core business of the bank, though a continued weakness observed in the loan growth on quarterly basis.

 

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