Zenith Bank

[riskreturn]

Originally Posted by ttoladele

You are possibly guessing right as i don't think any of the big banks want to create any semblance of doubt about their acclaimed strenght and health by not having a Dec. year ending voluntarily. Personally, i will exit any institution that fails to adopt it, the risk is not worth it, investors must cover their backs in this "climate".

Adoption of end-December date now seems irrelevant to the issue of presentation of deceptive balance sheet, inasmuch as there are still some banks that are not using end-December date from which those using end-December date can get inter-bank deposits to augment their balance sheet. The relevant issue is whether ALL OF THEM WITHOUT EXCEPTION adopt a common balance sheet date (whether or not it is end-December). If not, the ease of presentation of deceptive balance sheets would not be affected for those that adopt end-December date.

Besides, this issue of deceptive balance sheet size, being essentially an advertising/publicity gimmick, with little or no effect on authenticity of reported profits (as the channel of effects on reported profit is far from being clear, based on a previous interactive exchange of views in the MarketWatch Thread), should not be over-flogged in deciding whether or not to buy the stock of a particular bank.

[dannynoko]

Originally Posted by Abinishio

Hmm, You guys av lost me.
What has Dec YE av to do with declaring div or benefits?
This is just August, if they want to show Dec result, they can jolly well go ahead, but we need out div now.
Some more clarity on this is welcome pls.

AB

AB- I know how you feel,but remember, you can only have dividend info, if the board declares one. Right now it dosen't seem like it...we need to keep our fingers crossed and see where they are going with the result as released, there could be more info in the offing or boils down to Dec y/end time frame. Cheers!

[billions]

The market will likely react negatively to d result...dey shd hv declared an interim dividend to appease d gods.

[XXCASH]

Originally Posted by riskreturn

Adoption of end-December date now seems irrelevant to the issue of presentation of deceptive balance sheet, inasmuch as there are still some banks that are not using end-December date from which those using end-December date can get inter-bank deposits to augment their balance sheet. The relevant issue is whether ALL OF THEM WITHOUT EXCEPTION adopt a common balance sheet date (whether or not it is end-December). If not, the ease of presentation of deceptive balance sheets would not be affected for those that adopt end-December date.

Besides, this issue of deceptive balance sheet size, being essentially an advertising/publicity gimmick, with little or no effect on authenticity of reported profits (as the channel of effects on reported profit is far from being clear, based on a previous interactive exchange of views in the MarketWatch Thread), should not be over-flogged in deciding whether or not to buy the stock of a particular bank.

Well said, let's see what happens. I strongly believe that the big banks would want to adopt this uniform year. Don't forget that the desperados where the mid size banks and they are insignificant as long as i'm concerned going by the purpose of the uniform year.
As for me, i don't care what the mid-size banks declare because i won't believe it anyway and so would any sensible nigerian.(of course diamond bank is not included)

[Abinishio]

Na wa ohh,
Turanchi fala-fala.
Na dividend or bonus i ask of ohh.
Shikena !!!

[billions]

Proshare News and Analysis
Zenith releases results, holds corporate action
Posted Wednesday, August 13, 2008
Zenith Bank Plc today released its results for the financial year ended 30th June, 2008. Turnover increased by 66.83% to N158.294 billion, PBT also increased by 95.84% to N50.284 billion while PAT jumped by 118.54% to N41.040 billion. In spite of this impressive performance, the stock lost 13kobo and closed at N40.76.



While these numbers from Zenith Bank look very impressive, it should be noted that the figures released are un-audited; and there was no explanation for the release of a full year unaudited results.



It might probably be due to the recent reversal of CBN’s common year end convergence policy for Nigerian banks.



There is market hearsay that Zenith Bank might come up with a New Year end different from 30th June. This might also be the reason why no corporate action was announced.

[Apache]

Funny enough, it was announced on channels news yesterday that Zenith declared an interim dividend of N9.2B and i was wondering where they got that from

[billions]

Originally Posted by Apache

Funny enough, it was announced on channels news yesterday that Zenith declared an interim dividend of N9.2B and i was wondering where they got that from

That wld hv been abt 55k/share.It is probably true....we shd not forget all d past mistakes in d results displayed on d NSE site.

The absence of interim div could be a typographical error.

[omoregie]

Originally Posted by Abinishio

Hmm, You guys av lost me.
What has Dec YE av to do with declaring div or benefits?
This is just August, if they want to show Dec result, they can jolly well go ahead, but we need out div now.
Some more clarity on this is welcome pls.

AB

I came across this information on Reuters Africa website as posted on NigerianSecurities.com.

..... 'The bank has proposed a dividend of 9.2 billion naira, a 21 percent increase on the 7.6 billion naira it had projected' .......

Click link below to access full report:

NigerianSecurities - Analysis

However, one should note that the above information on dividend is not included in the post by Zenith Bank official website. Reuters information might just be speculation.

[dimeji_777]

Originally Posted by omoregie

I came across this information on Reuters Africa website as posted on NigerianSecurities.com.

..... 'The bank has proposed a dividend of 9.2 billion naira, a 21 percent increase on the 7.6 billion naira it had projected' .......

Click link below to access full report:

NigerianSecurities - Analysis

However, one should note that the above information on dividend is not included in the post by Zenith Bank official website. Reuters information might just be speculation.

I believe Zenith Bank will soon break the silence.

[tonidol]

Originally Posted by Abinishio

Hmm, You guys av lost me.
What has Dec YE av to do with declaring div or benefits?
This is just August, if they want to show Dec result, they can jolly well go ahead, but we need out div now.
Some more clarity on this is welcome pls.

AB

What they are saying is that irrespective of the indefinite postponement of the uniform year end proposed by CBN for all banks, some banks may want to justify their health by voluntarily complying by Dec 2008.

Which means Zenith may be reporting an 18months financial yr end till Dec 2008 and you may have to wait till early 2009 to know what is up on dividend/bonus except they want to go the way of UBA which gave interim bonus/dividend.

[billions]

This was copied from d Zenith bank site...nothing was said abt d interim dividend.
ZENITH BANK DECLARES N50 BILLION PROFIT



Zenith Bank Plc has declared a profit before tax of N50.28 billion for the financial year ended June 30, 2008, showing an impressive 96 per cent jump over the N25.67 billion recorded last year.



The bank’s full year result, released on the floor of the Nigerian Stock Exchange (NSE) IN Lagos yesterday also showed gross earnings rising by 67 per cent from N 94.88 billion to N158.29 billion.



Equally impressive, the result showed, is profit after tax, which jumped by 119 per cent from the N18.77 billion recorded last year to N41.04 billion.



Analysts and investors were quick to hail the result, which enhances Zenith Bank’s reputation as a market leader especially with regards to return on investment. “This outstanding result again shows the ability of the Zenith Brand to sustain its place as the foremost bank in the country,” one analyst said.



Most observers noted that the outstanding result would further endear the bank to shareholders who have reaped excellent returns on their investment, especially since the bank went public in 2004.



They noted that since the Bank’s Initial Public Offering in 2004, shareholders have received a return of 322%, including the bonus issues and dividend payout within the period.



Zenith Bank has maintained one of the best asset qualities in the banking industry as evident in the low ratio of non-performing loans to total loans of 1.8 per cent as at 30 June, 2007 compared to the industry average of about 8 per cent.



The operating results of the bank in the last five years indicate an impressive performance on all parameters. Total assets plus contingents grew by 730.06% from N153.44 billion as at the end of June 2003 to N1.271 trillion in June 2007. Within the same period, gross earnings increased from N17.8 billion to N94.9 billion, representing a 433.14% growth while profit before tax also grew by 372.42% from N5.44 billion to N25.7 billion.



Profit after tax for same period rose by 327.27% from N4.42 billion to N18.8 billion. Also impressive were the remarkable growth in shareholders funds from N12.651 billion to N114.6 billion, indicating an increase of 823.81% and total deposit from N61.5 billion to N634.5 billion representing a 931.54% jump.



The impressive growth pattern and performance over the years have earned Zenith Bank excellent ratings from local and international agencies. Fitch currently rates Zenith Bank AA- (National) while Agusto & Co., Nigeria’s foremost rating agency, has for ninth consecutive years rated Zenith Bank Triple Aaa saying ‘’…the bank is a financial institution of impeccable financial condition and overwhelming capacity to meet obligations as and when they fall due’’.

[chokit]

Hoping to withness the rise and rise of zenith bank interms of price and ROI.

[Dragon123]

I am surprised that none of our gurus are talking despite the situation with Zenith! It fell below N40 today despite the good end of year result posted! Gurus, please advise on what one should do in this abnormal situation. We bought this stock at N39 in the last PO remember, I have taken so many losses that I dont think I can watch Zenith begin any down ward slide. Do I sell now and repurchase later? Zain, Apache, Riskreturn etc, please say something. Thanks all.

[nazzyon]

Dragon: I am not amongst the most knowledge about investment but if I were in your shoes I will keep the unit I have got for a long term.

You have also said it yourself that it is trading @ a low price @ the moment.

Why sell if you know you won't gain?

Since there seems to be news about dividend; it is better if you wait for the issues be resolved. That way you will know you won't loose the possible dividend.

[waaan5]

Originally Posted by Dragon123

I am surprised that none of our gurus are talking despite the situation with Zenith! It fell below N40 today despite the good end of year result posted! Gurus, please advise on what one should do in this abnormal situation. We bought this stock at N39 in the last PO remember, I have taken so many losses that I dont think I can watch Zenith begin any down war