Zenith Bank

[riskreturn]

Originally Posted by dimeji_777

Can you please explain in clear terms how it is possible for a company to "administratively stabilise" its share price against the regulation of NSE

I think it is the same process through which UBN employed to jerk up the stock price to 42 Naira before putting it on technical suspension and which many other issuing coys had been using before that of UBN before applying for technicalsuspension. In the present case, it only needs to be done at frequent intervals to prevent high volatility in stock price. While NSE and SEC rules exist, evidence abound of several breaches with impunity.

[Monwowo]

Originally Posted by riskreturn

I think it is the same process through which UBN employed to jerk up the stock price to 42 Naira before putting it on technical suspension and which many other issuing coys had been using before that of UBN before applying for technicalsuspension. In the present case, it only needs to be done at frequent intervals to prevent high volatility in stock price. While NSE and SEC rules exist, evidence abound of several breaches with impunity.

Mamaki.....Hhmmmmm!!! na wa for this country oh. Administrative prop ups are all over the place even for the entire system...price freeze for a week, policy revervals and summersaults.....

[hispy99]

Zenith changes financial year
By Our correspondent
Published: Wednesday, 20 Aug 2008

Zenith Bank Plc has announced a change in its financial year end from June 30 to September 30, effective from the 2008 financial period.

A statement from the bank on Tuesday, stated that Zenith, which hitherto had operated a July to June financial year, took the decision in order to enhance shareholders’ value.

Its 12 month result released last week showed a profit before tax of N50.28bn.

According to the statement, the result for the full year ended September 30, 2008, would be even more impressive.

There are strong indications that shareholders of the bank may receive N1.60 dividend per share.

This will represent an increase of 52 per cent over the N1.05 per share contained in the bank‘s last offer document.

That expectation is supported by the 67 per cent increase in gross earnings from N94.88bn in 2007 to N158.29bn, a 96 per cent increase in profit before tax from N25.67bn to N50.28bn and a 119 per cent jump in profit after tax from N18.77bn to N41.04bn.

Analysts and investors, who were quick to hail the 12-month result, had noted that it would further endear the Zenith stock to shareholders, who had reaped excellent returns on their investment.

[riskreturn]

Originally Posted by hispy99

Zenith changes financial year
By Our correspondent
Published: Wednesday, 20 Aug 2008

Zenith Bank Plc has announced a change in its financial year end from June 30 to September 30, effective from the 2008 financial period.

A statement from the bank on Tuesday, stated that Zenith, which hitherto had operated a July to June financial year, took the decision in order to enhance shareholders’ value.

Its 12 month result released last week showed a profit before tax of N50.28bn.

According to the statement, the result for the full year ended September 30, 2008, would be even more impressive.

There are strong indications that shareholders of the bank may receive N1.60 dividend per share.

This will represent an increase of 52 per cent over the N1.05 per share contained in the bank‘s last offer document.

That expectation is supported by the 67 per cent increase in gross earnings from N94.88bn in 2007 to N158.29bn, a 96 per cent increase in profit before tax from N25.67bn to N50.28bn and a 119 per cent jump in profit after tax from N18.77bn to N41.04bn.

Analysts and investors, who were quick to hail the 12-month result, had noted that it would further endear the Zenith stock to shareholders, who had reaped excellent returns on their investment.

there now seems to be a "rebellion" against the former CBN directive (that has now been reverted, no thanks to political armtwisting of CBN). While the decision of UBA to retain its end-September date is a bit understandable, that of Zenith Bank looks like a direct assertion of its new-found independence from CBN on chice of financial year. It seems like an affront to prove a point.

[billions]

Originally Posted by riskreturn

there now seems to be a "rebellion" against the former CBN directive (that has now been reverted, no thanks to political armtwisting of CBN). While the decision of UBA to retain its end-September date is a bit understandable, that of Zenith Bank looks like a direct assertion of its new-found independence from CBN on chice of financial year. It seems like an affront to prove a point.

I think u r right but i was almost 100% certain dat UBA will use Dec. after d interim dividend was declared.

Anyway, i support d rebellion against Dec. yr end. CBN did not handle d situation very well. Banking is about Trust.Once u remove trust from banking ...all u will have left is robbery.

The way d uniform year was managed damaged d trust dat is needed to operate a bank effectively.

The banks need to rebuild d trust and one way of doing dis is thru fat dividends.

NOTE: I am not saying dat d banks are "saints" ooo.

[crtide]

Originally Posted by riskreturn

there now seems to be a "rebellion" against the former CBN directive (that has now been reverted, no thanks to political armtwisting of CBN). While the decision of UBA to retain its end-September date is a bit understandable, that of Zenith Bank looks like a direct assertion of its new-found independence from CBN on chice of financial year. It seems like an affront to prove a point.

I have not read the full story any where but I already have a conspiracy theory based on what is written here... Just like a true Naija person

I think the simple strategy Zenith wants to perpetrate by this announcement is to accomodate the subscribers to the last public offer in its dividents.
Nobody saw this protracted bearish trend on NSE, otherwise, one would have waited till now and buy Zenith at about same price as the offer on the floor. If you remember, the PO prospectus says that the subscribers will not share in the 2007/08 div. Which is the result for FYE June 2008.

By this time, Zenith and most of us expect its share price to increase the PO margin or at least retain it, in which case, subscribers to the PO will not mind not sharing a 2%, 3% or 4% div and or a bonus.
But with the share price treathening to fall below the PO price like most others...A bonus is ruled out. Any divident that does not include the PO subscribers will put them in a loss situation before they even get their share certificates.

So, zenith is hoping to include the PO subscribers in the div pay out.. Its a tricky one and I want to see how this will unfold.

If the year end change means Zenith's revised FYE2007/08 will be Sept 2008 then, my conspiracy theory will look substanciated, but if it is from next financial year.. then may be not but still how do you explain that there has not been any announcement of benefits to share holders on the release of what could be termed a fantastic result......

[Apache]

Originally Posted by crtide

I have not read the full story any where but I already have a conspiracy theory based on what is written here... Just like a true Naija person

I think the simple strategy Zenith wants to perpetrate by this announcement is to accomodate the subscribers to the last public offer in its dividents.
Nobody saw this protracted bearish trend on NSE, otherwise, one would have waited till now and buy Zenith at about same price as the offer on the floor. If you remember, the PO prospectus says that the subscribers will not share in the 2007/08 div. Which is the result for FYE June 2008.

By this time, Zenith and most of us expect its share price to increase the PO margin or at least retain it, in which case, subscribers to the PO will not mind not sharing a 2%, 3% or 4% div and or a bonus.
But with the share price treathening to fall below the PO price like most others...A bonus is ruled out. Any divident that does not include the PO subscribers will put them in a loss situation before they even get their share certificates.

So, zenith is hoping to include the PO subscribers in the div pay out.. Its a tricky one and I want to see how this will unfold.

If the year end change means Zenith's revised FYE2007/08 will be Sept 2008 then, my conspiracy theory will look substanciated, but if it is from next financial year.. then may be not but still how do you explain that there has not been any announcement of benefits to share holders on the release of what could be termed a fantastic result......

Just wanted to correct the above bolded statement. The PO prospectus states that subcribers to the offer will be entitled to dividends declared in 2008. Let me qoute it "The ordinary shares to be issued in the offer for subcription and rights issue will qualify for dividend during the year ending June 30, 2008" (Page 7 of the prospectus)

[crtide]

Originally Posted by Apache

Just wanted to correct the above bolded statement. The PO prospectus states that subcribers to the offer will be entitled to dividends declared in 2008. Let me qoute it "The ordinary shares to be issued in the offer for subcription and rights issue will qualify for dividend during the year ending June 30, 2008" (Page 7 of the prospectus)

Thank you for the correction, it is actually on page 9 of the one I found.
I guess that puts paid to my conspiracy theory!!
For a minute there I was feeling like Iain Flemming...

[Abinishio]

Originally Posted by crtide

Thank you for the correction, it is actually on page 9 of the one I found.
I guess that puts paid to my conspiracy theory!!
For a minute there I was feeling like Iain Flemming...

Sorry ur bubble bust.
Maybe u actually felt like Mike Okiro

AB

[billions]

Proshare News and Analysis
Zenith Bank presents results to stockbrokers
Posted Friday, August 22, 2008




Zenith Bank’s recently released twelve month result for the period ending June 2008 has won the commendation of stockbrokers who at a forum in Lagos at the weekend described it as astounding.



Speaking at the stockbrokers’ forum organized by the bank at the Civic Centre, Victoria Island, Lagos to review the 2007/8 result, the doyen of stock broking in Nigeria, Reverend Olu Odejmi said the result was a product of the culture of excellence for which Zenith Bank is known, powered by a sound management team, led by the bank’s Managing Director, Jim Ovia.



The bank’s unaudited result for the period showed gross earnings of N158.29 billion for the period up to June 30, 2008 indicating a 67 per cent increase over the N94.88 billion declared last year.



The result also showed improved profitability, with profit before tax jumping by an impressive 96 per cent from the N25.67 billion recorded last year to N50.28 billion for the year under review. 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.



Stockbrokers at the event equally commended the strong performance of the Zenith stock, which they said had remained relatively stable at a time when other banks’ shares were fast losing value. This development, they said, reflected the underlining strength of the bank and rising public confidence in the management of the bank.



Stressing the essence of the forum, Ovia said the management team thought it wise to carry major stakeholders such as the stockbrokers along on the change in the financial year of the bank from June to September.



The bank had earlier in the week announced its decision to shift its financial year end from June to September in a move that observers believe is aimed at enhancing shareholder value.



Ovia urged the stockbrokers to build up investors’ confidence in the market through education so that they could see the current downturn in the market as a passing phase and one that would soon be over.



He reaffirmed the bank’s commitment to creating value for its customers, saying a handsome dividend of N1 60k awaited the shareholders at the end of the bank’s financial year in September.

As a panacea for the current lull in the market, Ovia called for urgent reforms in the capital market to enhance the market efficiency but more importantly to bring it up to global standards.

[billions]

A dividend yield of abt 4.3% cannot prevent a further fall in d price of Zenith...except d market improves.

The payment date of d 85k interim dividend of dangote sugar is on d 29th of August.The dividend yield of dis interim dividend is over 4% and d price of dangote sugar is still falling.

[phemmie06]

Hi Niger best brain
Please my cousin have not got is zenith share cert.,and I am sure the problem is not from wrong address,'cos he used our valid postal address.
He said I will be responsible for it 'cos I adviced him to subscribe to the offer.Pls what is the way out.

[dannynoko]

Originally Posted by phemmie06

Hi Niger best brain
Please my cousin have not got is zenith share cert.,and I am sure the problem is not from wrong address,'cos he used our valid postal address.
He said I will be responsible for it 'cos I adviced him to subscribe to the offer.Pls what is the way out.

Well is not something you could not be able to handle. Your options here is to go through your brokers if you have any or go personally to the registrars and they will tell you what to do, if the cert was mailed or not. Probably, you will be required to fill out some kind of form to have the cert released or reissued to you. Good luck!

[hispy99]

Zenith Bank to Pay N1.70 Dividend
•Financial year end now Sept 30
By Linda Eroke, 08.25.2008


There are strong indications that Zenith Bank Plc could pay a dividend of as much as N1.70 per share for the current financial year.
And in what it described as a bid to further enhance shareholder value, Zenith Bank Plc has officially announced a change in its financial year end from June 30 to September 30, starting from this year.

The bank, which hitherto operated a July to June financial year, recently released its twelve-month result showing “remarkable improvements” on all parameters.

The result showed a 67 per cent increase in Gross Earnings from N94.88 billion in 2007 to N158.29 billion as at June 30, 2008. Pre tax profit for the period rose by 96 per cent from N25.67 billion to N50.28 billion and profit after tax hit N41.04 billion, representing a jump of 119 per cent from N18.77 billion the previous year.

The bank said with the twelve-month unaudited result, it is expected that the 15-month audited result for the period ending September 30, 2008 “would be even more impressive”.

Analysts and investors, who hailed the 12-month result, noted that the outstanding result would further endear the Zenith stock to shareholders who have reaped impressive returns on their investment since the bank went public in 2004.

Since then, shareholders of the bank have received a return of over 322 per cent (including capital gains, dividend payouts and bonuses) making the Zenith stock arguably the most coveted on the Nigerian Stock Exchange (NSE).

Zenith Bank said it had delivered on promises and maintained the lead in key areas, “driven by Zenith’s Bank’s strict adherence to good corporate governance, world class accounting and reporting standards as well as strong business reputation”.

Boosted by the growth pattern and performance over the years, Zenith Bank has earned impressive ratings from local and international agencies. Standard and Poor’s currently rates the bank BB-, which is the highest ever assigned to any Nigerian bank.

Also, Fitch Ratings currently rates Zenith Bank AA- (National), while Agusto & Co., Nigeria’s foremost rating agency, has for the ninth consecutive year 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’’.

Only a few weeks ago, Zenith Bank was named ‘Best Bank in Nigeria’ for 2008 by Euromoney. The bank had earlier in the year won two major awards, ‘Bank of the Year’ and ‘Corporate Citizen of the Year’ at the 2008 THISDAY Award for Excellence. This is in addition to the ‘CEO of the Year,’ award won by its Managing Director for his sterling achievement in banking.

[dimeji_777]