Zenith Bank records N57.7bn gross earnings in 6 mths


January 09, 2008


Zenith Bank Plc has announced remarkable gross earnings of N57.58 billion for the half year ending December 31, 2007, underscoring the bank’s growing share of the industry business.

See the equity report note at  http://www.proshareng.com/blog/?attachment_id=314



The unaudited half year results, announced in Lagos on the floor of the Nigerian Stock Exchange also showed profit before tax of N20.14 billion amounting to a 57 per cent increase over the N12.83 billion recorded for the same in the previous year.


The results equally showed that profit after tax rose by a remarkable 66 per cent from N9.47 billion recorded the previous year to N15.71 billion for the period sunder review.


The bank is presently in the market to raise N130 billion in a hybrid offer through the offer for subscription of 1,763, 000, 000 ordinary shares of 50 kobo each at N38.90 and a rights issue of 1,654,557,911 shares at N36.90.


The rights issue is coming at a discount of at least N9.19 per share while the public offer has a discount of N7.19 factors that analysts say have produced positive market reaction since the bank’s offer opened on December 6. The bank’s stock last traded for N46.09 before the statutory announcement at the Nigerian Stock Exchange (NSE) for the offer.


Zenith Bank shares have long been coveted by investors who desire consistent and stable returns on their investments. The bank has delivered to its shareholders capital appreciation in excess of 600 per cent since its shares were first listed on the stock exchange in 2004.


Since it went public, the Zenith stock has enjoyed a phenomenal progression from N10.90, to close at N66.14 per share at the end of trading at the NSE on June 30, 2007, representing a total gain of over N55.24 per share.


Apart from the capital appreciation, investors have also reaped from the dividend payout as the bank made good on the promise made by paying N4.2billion (70 kobo/share) in 2004/2005 and N6.6 billion (N1.10/share) in the 2005/2006 financial years. Last year, Zenith bank also paid out a dividend of N9.26 billion (N1/share) in addition to a four (4) for one (1) bonus issue.



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