Coy: ZENITH BANK PLC. (ZENITHBANK)
Rating: Buy
Current Market Price: N22.00
Year High: N27.50
Year Low: N18.90
Fair Value: N43.02
By: Jeariogbe Tunde Segun (Equity Analyst)
Earnings Brief:
- As in the previous year, the management of Zenith Bank had approved 30k cash dividend for the half year ended, 30th June, 2022
- The closure date for the said dividend is 7th September, 2022
- Thus, the qualification date is 6th September, 2022
- While, payment date is 13th September, 2022
- Earnings per Share for the half year build slightly by 4.99%
- Foreign currency translation differences for foreign operations which was estimated at N28.818 billion dipped the earnings, thus bringing the total comprehensive income per share to N2.27 as against N3.53 estimated in the corresponding year.
- Earnings Yield in appreciable at 16.13% as against 13.85% yield achieved in the corresponding year
- Loan to Deposit rate stood at 57.75% lower than the 60.55% posted in the corresponding year
- See below for detailed figures/ratio comparison
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ZENITH INT’L PLC |
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| Bourse | Nigerian Stock Exchange |
| Code Name | ZENITHBANK |
| Sector | FINANCIAL SERVICES |
| Market Classification | PREMIUM BOARD |
| Nature of Business | Commercial Banking |
| Date of Incorporation | May-30-1990 |
| Date Listed | Oct-21-2004 |
| End of Accounting Year | 31st December |
| Website | www.zenithbank.com |
| Registrar | VERITAS REGISTRARS LIMITED |
| Auditor | PRICEWATERHOUSECOOPERS |
| Share Price@Relsd (N) | 22.00 |
| Earnings per Share | 3.55 |
| Intrinsic Value(N) | 43.02 |
| Share Outstanding | 31,396,493,786 |
| Market Capitalisation | 690,722,863,292 |
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ZENITH INT’L PLC |
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Statement of Comprehensive Income |
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| 2022 | 2021 |
%CHG |
|
| GROSS EARNINGS | 404,763,000,000 | 345,559,000,000 | 17.13 |
| INTEREST INCOME | 241,726,000,000 | 203,934,000,000 | 18.53 |
| INTEREST EXPENSES | 56,983,000,000 | 43,994,000,000 | 29.52 |
| NET INTEREST INCOME | 184,743,000,000 | 159,940,000,000 | 15.51 |
| OPEX | 163,514,000,000 | 135,155,000,000 | 20.98 |
| DEPRECIATION | 13,417,000,000 | 12,925,000,000 | 3.81 |
| AMORTISATION | 1,669,000,000 | 1,770,000,000 | 5.71 |
| PBT | 130,005,000,000 | 117,059,000,000 | 11.06 |
| TAX | 18,592,000,000 | 10,940,000,000 | 69.95 |
| PAT | 111,413,000,000 | 106,119,000,000 | 4.99 |
| TOTAL COMP INCOME | 80,573,000,000 | 110,794,000,000 | -27.28 |
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Statement of Financial Position |
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| Total Assets | 10,115,362,000,000 | 8,515,471,000,000 | 18.79 |
| Total Liabilities | 8,843,086,000,000 | 7,372,024,000,000 | 19.95 |
| Net Assets | 1,272,276,000,000 | 1,143,447,000,000 | 11.27 |
| Property Plan & Equipment | 202,284,000,000 | 193,209,000,000 | 4.70 |
| Retained Earnings | 592,205,000,000 | 519,995,000,000 | 13.89 |
| Total Deposits | 7,152,964,000,000 | 5,770,434,000,000 | 23.96 |
| Total Loans and Advances | 4,131,035,000,000 | 3,493,946,000,000 | 18.23 |
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Financial Strength/Solvency Ratio |
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| TICKERS | 2022 | 2021 |
%CHG |
| Debt Ratio | 87.42% | 86.57% | 0.98 |
| Total Debt to Equity Ratio (MRQ) | 6.95 | 6.45 | 7.81 |
| Equity Ratio | 12.58% | 13.43% | -6.33 |
| Beta Value | 1.01 | 1.11 | -9.01 |
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PROFITABILITY RATIOS |
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| TICKERS | 2022 | 2021 |
%CHG |
| EBITDA MARGIN | 53.96% | 53.70% | 0.48 |
| PRE-TAX MARGIN | 32.12% | 33.88% | -5.19 |
| EFFECTIVE TAX RATE | 14.30% | 9.35% | 53.02 |
| IE TO GE | 14.08% | 12.73% | 10.58 |
| ROAE | 8.76% | 9.28% | -5.64 |
| ROAA | 1.10% | 1.25% | -11.62 |
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EFFICIENCY RATIOS |
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TICKERS |
2022 |
2021 |
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| OPEX TO GE | 40.40% | 39.11% | 3.29 |
| GE TO TA | 4.00% | 4.06% | -1.39 |
| LDR | 57.75% | 60.55% | -4.62 |
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ZENITH INT’L PLC |
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Investment/Valuation Ratios |
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| Tickers | 2022 | 2021 | %Chg |
| EPS | 3.55 | 3.38 | 4.99 |
| TCIP/SHARE | 2.57 | 3.53 | -27.28 |
| P/E-Ratio | 1.55 | 1.80 | 14.12 |
| Earnings Yield | 16.13% | 13.85% | 16.44 |
| BV/Share | 40.52 | 36.42 | 11.27 |
| PBV | 0.54 | 0.67 | -18.97 |
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DIVIDEND INFORMATION |
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Tickers |
2022 | 2021 |
%Chg |
| Latest Final Dividend | 0.30 | 0.30 | 0.00 |
| Final Dividend Pay-Out Ratio | 8.45% | 8.88% | -4.75 |
| Final Dividend Yield | 1.36% | 1.23% | 10.91 |
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