Omoh Gabriel
14 August 2008
Zenith Bank, yesterday, announced its 2007/2008 result yesterday with gross earnings of N158.29 billion.
The result showed a significant move up of the bank's financials of 67 per cent in gross earning, indicating a larger market share in the just ended financial year.
Profit before tax rose considerably by 96 per cent from the N25.67 billion recorded last year to N50.28 billion for the year under review while profit after tax, moved up by 119 per cent from the N18.77 billion recorded last year to N41.04 billion.
A statement by the bank released on the floor of the Nigerian Stock Exchange said: "Zenith Bank Plc has declared gross earnings of N158.29 billion for the financial year ending June 30, 2008, indicating a 67 per cent increase over the N94.88 billion declared last year.
"The unaudited result for the 2007/2008 financial year released on the floor of the Nigerian Stock Exchange also showed improved profitability, with profit before tax jumping by an impressive 96 per cent from the N25.67 billion recorded last year to N50.28 billion for the year under review.
"Equally impressive, the result showed, is profit after tax, which jumped by 119 per cent from the N18.77 billion recorded last year to N41.04 billion."
Capital market operators and shareholders present at the presentation of the result were quick to hail the result, which enhances Zenith Bank's reputation as a market leader especially with regards to return on investment. Most observers noted that the outstanding result would further endear the Zenith stock to shareholders who have reaped excellent returns on their investment, especially since the bank went public in 2004.
They noted that since the bank's Initial Public Offering in 2004, shareholders had received a return of 322 per cent, including the bonus issues and dividend payout within the period.
Shareholders of Zenith Bank Plc have benefited from the bank's generous dividend pay out of N20 billion since its initial public offering (IPO), information available has shown.
Every year since its IPO, the bank has scored high on credibility among investors for usually surpassing the dividend projections made when it went public with each payout. The bank surpassed its dividend projections of N5.1 billion for 2006 by actually paying out N6.6 billion, representing a 29.6 per cent increase. In a similar fashion, the bank surpassed its projections of N7.6 billion for 2007 by paying out N9.2 billion, representing a 21 per cent increase.
Zenith Bank has maintained one of the best asset qualities in the banking industry as evident in the low ratio of non-performing loans to total loans of 1.8 per cent as at 30 June, 2007 compared to the industry average of about 8 per cent.
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