Zenith Bank Nears N1.47Trn on Healthy Earnings Expectations

Zenith Bank Nears N1.47Trn on Healthy Earnings Expectations

Zenith Bank Plc market value expanded slightly near N1.47 trillion in the equities segment of the Nigerian Exchange amidst healthy earnings growth expectations. The bank’s share price increased slightly to N46.8 in the equities market in the just concluded week from the opening price of N46.

At the current market price, Zenith is trading at a less than 1% discount to its 52-week high in the stock market amidst healthy earnings expectations for 2024. With an upward adjustment to its target price, equities analysts said the financial services company intends to capitalise on its upcoming adoption of a HoldCo structure to establish new business verticals.

This strategic shift is expected to enhance its earnings profile and diversify its non-interest income streams beyond its strong trading revenue, CardinalStone Securities Limited said in a note.

The investment firm expects Zenith Bank to close 2024 on a strong note, with a PAT of N1.1 trillion, which is an increase of +63.5% year on year while earnings per share is expected to settle at N35.25.

“This growth is expected to be primarily driven by a triple-digit increase in net interest income (NII), alongside strong non-interest revenue (NIR) bolstered by solid trading gains as the bank continues to maintain a resilient trading portfolio,” CardinalStone said in a report.

Analysts expect the bank’s performance to be shaped by the interplay of interest rate dynamics and the bank’s readiness to grow risk assets in 2025. Strong trading gains could also act as a secondary support to earnings in the financial year, analysts said.

The proceeds of Zenith Bank’s capital raise are expected to shore up the bank’s capital for growing its lending portfolio, investing in technology, and facilitating market expansion.

CardinalStone analysts raised Zenith Bank’s 12-month target price to N70.41 per share in expectation of a successful capital raise to meet the regulator’s demand. #Zenith Bank Nears N1.47Trn on Healthy Earnings Expectations  FBN Holdings Records Huge Off-Market Shares Transactions