Zenith Bank

[knightofdelta]

Zenith is a safe haven for investment, but they played some tricks with taxes and it is quite obvious that they were hard hit by the financial turmoil during their fifth quarter (sounds strange... should be fifth quintile I suppose).

Anyway here is my full analysis...

[hispy99]

Originally Posted by ayemco

I am aware of that, but if making 6Billion after cleaning up any mess and the Point in time figures still look like this, I am okay.

We don't know what happened, but if indeed it was a clean up, are we sure there is still not more to come?

[Goddey]

Any news on the certificate? any news on the alotment?

[hispy99]

Originally Posted by Goddey

Any news on the certificate? any news on the alotment?

bros, allotment was done a while ago. This link should provide some info. Check post #71

Zenith Bank

[muranay@yahoo.com]

Originally Posted by knightofdelta

Zenith is a safe haven for investment, but they played some tricks with taxes and it is quite obvious that they were hard hit by the financial turmoil during their fifth quarter (sounds strange... should be fifth quintile I suppose).

Anyway here is my full analysis...

Please confirm if people that participated in the last public offer are entitled to the N1.7 dividen declared.

[hispy99]

Originally Posted by muranay@yahoo.com

Please confirm if people that participated in the last public offer are entitled to the N1.7 dividen declared.

Yes, you are entitled to dividend

[olusolakemmy]

hey people, zenith na big boy ooo
this guys are giving out 28b as dividend!
enough to form another bank

[zainabusman]

Originally Posted by hispy99

We don't know what happened, but if indeed it was a clean up, are we sure there is still not more to come?

Indeed.

It baffles me that there is not much concern that Zenith's profitability in the 5th quintile declined by more than 50%. From an average profit of N12.5 billion in the previous four quarters to N6 billion calls for concern. We should ask ourselves what happenned? Is this a one off or part of the problems we might see across the industry? Anyway i usually discount any fsct by 25% for the banks. Better safe than sorry.

People should not get me wrong as currently Zenith is my second largest holdings. I need to know what caused this dip.

[olusolakemmy]

Originally Posted by zainabusman

Indeed.

It baffles me that there is not much concern that Zenith's profitability in the 5th quintile declined by more than 50%. From an average profit of N12.5 billion in the previous four quarters to N6 billion calls for concern. We should ask ourselves what happenned? Is this a one off or part of the problems we might see across the industry? Anyway i usually discount any fsct by 25% for the banks. Better safe than sorry.

People should not get me wrong as currently Zenith is my second largest holdings. I need to know what caused this dip.

hey zain,
did i read from bottom up?
i need to look for thursday paper to confirm my news oo
they didnt report dip in profit, although am not in zenith so i have to believe you cause of your interest in it.

[billions]

Originally Posted by olusolakemmy

hey zain,
did i read from bottom up?
i need to look for thursday paper to confirm my news oo
they didnt report dip in profit, although am not in zenith so i have to believe you cause of your interest in it.

The total profit was okay but the last quarter was very weak.About 6 billion(PBT) was made in dat quarter.

[zainabusman]

Originally Posted by olusolakemmy

hey zain,
did i read from bottom up?
i need to look for thursday paper to confirm my news oo
they didnt report dip in profit, although am not in zenith so i have to believe you cause of your interest in it.

The qtr from July 2008 to Sept 2008 was not good. The profit for the qtr was more than 50% lower than the average of the previous 4.

The publication on Thursday cant help. Just go through this thread for the 12 months result. Compare the PBT not the PAT.

[ayemco]

Originally Posted by hispy99

We don't know what happened, but if indeed it was a clean up, are we sure there is still not more to come?

Thank you Hipsy thats what I am talking about

[chokit]

Investors laud Zenith Bank's N28.5b dividend NIGERIA Nov 20, 2008

THE decision by the board of Zenith Bank Plc to pay a dividend of N28.5 billion, the highest ever by any financial institution, is generating excitement amongst investors as they look forward to receiving another big reward from a stock that has never failed to deliver.
The bank, which recently released its 2008 financial result, is paying a dividend of N1.70 per share, up from the N1.10 per share paid last year. Zenith has since its quotation in 2004 built a reputation with returns delivered to shareholders, which have set a standard in the industry.
Since the quotation, shareholders have received a return of 322 per cent, including capital gains and dividend payout, making the bank one of the most generous judged by its dividend policy.
Investors have received generous dividend payments totaling about N20 billion in just three years, with most expecting that their investment in the bank would deliver more dividend in the years ahead. They have good reason to be expectant given the recent record of the bank's dividend payout.
The bank surpassed its dividend projections of N5.1 billion for 2006 by actually paying out N6.6 billion (or N1.10 per share), representing a 29.6 per cent increase, while it paid N9.2 billion (or 100 kobo) in 2007 instead of the N7.6 billion projected.
On the strength of the recently released result, the bank is also delivering on its promise to further enhance shareholders value with a dividend payout of N28.5 billion, the highest ever by any bank in Nigeria.
This amounts to N1.70 kobo per share as against N1.10 kobo per share last year. Given the details of the result, most market watchers believe the bank is well placed to deliver even better performance in the years to come.
Already, the Zenith Bank's stock has received what amounts to a massive endorsement from investors, with renewed interest in the bank's stock producing over 10 per cent increase in price in just two days.
The result, which reaffirmed Zenith Bank's leadership position in the banking industry, showed shareholders funds rising to N346.6 billion, a 198 per cent rise from N116.4 recorded in the previous year.
In response to the result, the stock has received five per cent price mark-up on the first full day of trading, lifting the price per share from N25.85 to N27.14 amounting to a price gain of N1.29 per share.
According to the bank, keeping all stakeholders satisfied has been a winning strategy for the bank since it was established in 1990.
Recently, Zenith Bank was named 'Best Bank in Nigeria' for 2008 by Euromoney and last month it emerged the Best Bank in Africa, a recognition conferred on the bank by the African Banker magazine at an impressive awards ceremony in Washington DC.
The bank had earlier in 2007 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. The bank equally won two awards, the Best Bank in ICT best Bank in Export Finance, at the Vanguard Bankers' Award held in April 2008. The bank was in November 2007 named the 'African Banker of the Year,' by the African Investor magazine. The same year, Zenith Bank was named 'Quoted Company of the Year' by the Nigerian Stock Exchange (NSE). In January 2007, Zenith was adjudged the most customer-focused bank in Nigeria from a survey conducted by foremost consulting firm, KPMG. The survey, which focused on corporate customers of banks, including companies in a variety of sectors, found that they were most satisfied with the services rendered by Zenith Bank. Zenith Bank's commitment to social responsibility is acknowledged at home and abroad. The bank was adjudged the most 'Corporate Socially Responsible Company' in Nigeria by ThisDay newspaper early in 2007 and later in the year as the 'Most Corporate Socially Responsible Bank in Africa' by the African Banker magazine.
Source: GUARDIAN

[Michael]

Originally Posted by zainabusman

Indeed.

It baffles me that there is not much concern that Zenith's profitability in the 5th quintile declined by more than 50%. From an average profit of N12.5 billion in the previous four quarters to N6 billion calls for concern. We should ask ourselves what happenned? Is this a one off or part of the problems we might see across the industry? Anyway i usually discount any fsct by 25% for the banks. Better safe than sorry.

People should not get me wrong as currently Zenith is my second largest holdings. I need to know what caused this dip.

I hope the future results do not move to justify current market prices. Unless there is a reasonable excuse from Zenith we are likely to see more of such. The Good news is that with 28Bn div to pay out they must be strong.

[Michael]

Originally Posted by chokit

Investors laud Zenith Bank's N28.5b dividend NIGERIA Nov 20, 2008

THE decision by the board of Zenith Bank Plc to pay a dividend of N28.5 billion, the highest ever by any financial institution, is generating excitement amongst investors as they look forward to receiving another big reward from a stock that has never failed to deliver.
The bank, which recently released its 2008 financial result, is paying a dividend of N1.70 per share, up from the N1.10 per share paid last year. Zenith has since its quotation in 2004 built a reputation with returns delivered to shareholders, which have set a standard in the industry.
Since the quotation, shareholders have received a return of 322 per cent, including capital gains and dividend payout, making the bank one of the most generous judged by its dividend policy.
Investors have received generous dividend payments totaling about N20 billion in just three years, with most expecting that their investment in the bank would deliver more dividend in the years ahead. They have good reason to be expectant given the recent record of the bank's dividend payout.
The bank surpassed its dividend projections of N5.1 billion for 2006 by actually paying out N6.6 billion (or N1.10 per share), representing a 29.6 per cent increase, while it paid N9.2 billion (or 100 kobo) in 2007 instead of the N7.6 billion projected.
On the strength of the recently released result, the bank is also delivering on its promise to further enhance shareholders value with a dividend payout of N28.5 billion, the highest ever by any bank in Nigeria.
This amounts to N1.70 kobo per share as against N1.10 kobo per share last year. Given the details of the result, most market watchers believe the bank is well placed to deliver even better performance in the years to come.
Already, the Zenith Bank's stock has received what amounts to a massive endorsement from investors, with renewed interest in the bank's stock producing over 10 per cent increase in price in just two days.
The result, which reaffirmed Zenith Bank's leadership position in the banking industry, showed shareholders funds rising to N346.6 billion, a 198 per cent rise from N116.4 recorded in the previous year.
In response to the result, the stock has received five per cent price mark-up on the first full day of trading, lifting the price per share from N25.85 to N27.14 amounting to a price gain of N1.29 per share.
According to the bank, keeping all stakeholders satisfied has been a winning strategy for the bank since it was established in 1990.
Recently, Zenith Bank was named 'Best Bank in Nigeria' for 2008 by Euromoney and last month it emerged the Best Bank in Africa, a recognition conferred on the bank by the African Banker magazine at an impressive awards ceremony in Washington DC.
The bank had earlier in 2007 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. The bank equally won two awards, the Best Bank in ICT best Bank in Export Finance, at the Vanguard Bankers' Award held in April 2008. The bank was in November 2007 named the 'African Banker of the Year,' by the African Investor magazine. The same year, Zenith Bank was named 'Quoted Company of the Year' by the Nigerian Stock Exchange (NSE). In January 2007, Zenith was adjudged the most customer-focused bank in Nigeria from a survey conducted by foremost consulting firm, KPMG. The survey, which focused on corporate customers of banks, including companies in a variety of sectors, found that they were most satisfied with the services rendered by Zenith Bank. Zenith Bank's commitment to social responsibility is acknowledged at home and abroad. The bank was adjudged the most 'Corporate Socially Responsible Company' in Nigeria by ThisDay newspaper early in 2007 and later in the year as the 'Most Corporate Socially Responsible Bank in Africa' by the African Banker magazine.
Source: GUARDIAN

If Investors are so happy with the Dividend why did it fall 5% from the opening of the market yesterday and is likely to fall some more today and dare i say tommorrow