Zenith Bank Plc (ZENITHBANK) released its six months audited results for the period ended June 30th 2017, late yesterday, being 10th August, 2017.
From the result gathered,
Gross Earnings grew by 77.10% y/y to N380.44 billion, so was Operating Expenses by 32.80% y/y.
Profit Before Tax and Profit After Tax, both increased significantly by 71.01% y/y and 112.36% y/y to N92.18 bilion and N75.32 billion respectively with a tax reduction of 8.53%y/y
Earnings per share (EPS) also grew to N2.40 in the period, compared with N1.13 recorded in the previous year.
The directors also proposed an interim dividend of N0.25 per share, set for a closure date on 18th August, 2017 and a payment date set for 25th August, 2017.
The H1 bank’s growth was spurred by a surge in non-interest incomes (Other Operating Income: Gain on disposal of property and equity of N8.4 billion, Foreign revalaution gain (96% y/y) and dividend income (82% y/y); Trading Incomes : Increase in Forex Income of N46.4 billion vs N(2.8) billion loss recorded previously, increase in TBILLS (754% y/y) and bonds) which more than offset the 32.8% y/y spike in opex and 198%y/y increase in loan impairment charges of N42.4 billion .
Finally, ZENITHBANK H1′ 2017 result was impressive compared to the previous quarter, given our expectation that monetary policy may remain tight till year end as seen in the last MPC meeting, hence,the bank gaining support from the high interest rate environment. Also, combined with the gains from the increase in foreign currency, liquidity should be positive for earnings.
However, we recommend a BUY on the stock.
Management will be hosting a conference call for investors and analysts on Monday, August 14, 2017 to discuss the H1-2017 performance. The dial-in details are as follows:
Nigeria Toll: +234 (1) 903 0080
United Kingdom Toll: +44 (0) 3333 000 804
Unites States: +1 631 913 1422
South Africa: +27 21 672 4118
Access code: 88649922#