Zenith Bank Jumps by 17% Ahead of Earnings Release
Zenith Bank Plc recorded about 17% share price growth ahead of the Tier-1 lender’s financial year 2023 earnings release. The tier-1 banking champs was among top gainers that drove banking index upward in the market last week.
Investors weer buying the bank’s share in anticpation of its final year 2023 earnings result. Volume of shares traded last week range from 10 million to 15 million each day, recording uptick in four days.
In the Tier-1 banking category, FBN Holdings is still the only player that have its results posted on the Nigerian Exchange. This appears to be a reversal of the usual trend. Elephant often come last with earnings announcement, which came healthier than expected.
Analysts explained that they maintain buying interest on Zenith Bank because of expectation that the lender performance cannot be all worst in key metrics. In a dicsusion at Broadstreet, analysts said its leadership has continued to extend the bank’s focus with foreign offshoots and a deep dive into the retail end of the market.
“This will continue to help earnings performance”, analysts said noting that Zenith is also major player in the banking sector in the local market where it continues to exercise dominance.
Traded at N39.70, the market repriced Zenith Bank higher last week in anticipation of its earnings release before the end of the first quarter in the coming days. The tier 1 bank ranked second at N1.246 trillion on Friday after investors showed interest in four out of five trading sessions in the domestic bourse last week.
The banking sector is faced with headwinds just like other entities operating in Nigeria. The difference is, that banks are beneficiaries of both interest rate hikes and the devaluation of the naira.
With a strong current account, and savings account mix, analysts see lower pressures on Zenith Bank’s funding profile in the immediate term. Market analysts also place higher trust in the bank’s asset quality due to historical records, and there is an expectation that its dividend payment track record will not swerve.
Recall that the apex bank has directed lenders not to pay dividends from FX revaluation gains. In its 9 months of the financial year 2023 results. The bank’s profit after tax spiked by more than 149% year on year, driven by improved core and non-core income.
The non-interest income growth was largely driven by the revaluation gain due to the unification of exchange rates during the year. Inside sources told MarketForces Africa that Zenith Bank is planning to enter more countries as part of efforts, plans to expand its operation across the world. #Zenith Bank Jumps by 17% Ahead of Earnings Release Reps to Interface with Dangote, BUA on Cement Price
