Zenith Bank Emerges Nigeria's Biggest Bank
• Assets Base Hits N714 bn
• Pays Highest Naira Dividend Of N6.6 bn
Zenith Bank Plc has emerged the biggest bank in the country with the announcement of its full-year result showing total assets plus contingents of N714.51 billion for the financial year ended June 2006. This represents an impressive 92.73 percent growth from the N370.72 billion recorded the previous year and confers the industry leadership on Zenith Bank on account of total assets.
The bank has also excited the financial market with the news of a dividend payout of N6.6 billion to its shareholders, up from the N4.2 billion dividend payout in the previous year. The amount is the biggest ever by any bank in the country. Shareholders of the bank have a lot to celebrate as they are guaranteed a dividend per share of N1.10, the highest from any bank in the 2005/2006 financial year.
This represents a 57.14 per cent increase over the 70 kobo per share paid last year.
The results released on the floor of the Nigerian Stock Exchange (NSE) in Lagos yesterday also showed a strong performance on all other parameters. For instance, gross earnings for the year stood at N58.22 billion, up from the N34.91 billion recorded in the previous year, indicating dominance in its market share.
Shareholders' funds for the same period jumped by 146.16 per cent from N37.78 billion as at the end of June 2005 to N93.80 billion, the largest so far by published financial statements of any bank. This was boosted by the N53.63 billion raised through a highly successful public offer conducted earlier in the year. Profit before taxation for the period under review was N15.15 billion as against the N9.16 billion recorded in the previous year, representing a 65.39 per cent increase. Zenith Bank has long held an attraction for investors with the price of the shares having grown steadily from a listing price of N10.90 in October 2004 to close at N21.55 as at Friday July 28, 2006.
The bank has maintained one of the best assets qualities in the banking industry as evident in the low ratio of non-performing loans to total loans of 1.1% as at 30 June, 2006 compared to the industry average of about 18%.
From 78 branches before it went public, the bank now has about 170 branches and business offices connected online, real time with a presence in all the state capitals, the Federal Capital Territory (FCT) and major towns and cities in Nigeria as well as a subsidiary in Ghana, which commenced operations in September 2005.
The impressive growth pattern and performance over the years have earned Zenith Bank excellent ratings from local and international agencies with Fitch Ratings four consecutive years rating the bank AA- (long term) and F1+ (short term). The ratings, Fitch said, “reflect its strong domestic franchise, good asset quality and sound earnings record’’.
(Posted 1st August, 2006)
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