Economic Confidential, August 2007

MONETARY

Zenith Bank’s balance sheet hits N1.2trn     

The total assets and contingents of Zenith Bank Plc have hit N1.2trillion, representing a 67 percent growth from the N759 billion recorded in its last financial year. This ranks Zenith as the bank with the largest assets and contingents in the banking sector.

According to the 2006/2007 audited financials which was released recently, Zenith Bank also recorded a N26 billion profit before tax, up from the N15.15 billion it recorded last year. A statement from the bank said "The bank is also creating more value for its shareholders with a one for four bonus issue and a hefty dividend payout of N9.26 billion, which surpasses the N6.6 billion paid out in the previous year by almost 40 per cent.

"Gross earnings rose to N94.88 billion, a 58.1 per cent increase from the N60 billion recorded the previous year, indicating an increasing dominance in its market share. Equally, profit after tax show a 63.5 per cent increase from N11.48 billion recorded the previous year to N18.77 billion in the year under review," the bank said.

"The financial year just ended has been an exceptionally good one for Zenith bank with renewed interest in its stock on the floor of the Nigerian Stock Exchange (NSE) driven by a string of good quarterly results, boosting its share price to an all time high of N65. The bank thus remains the most capitalized company on the Exchange, with market capitalisation of N612.82 billion as at June 2007."

"The result was hailed by financial analysts and investors as an outstanding result, as it shows the ability of Zenith Bank to sustain its performance, raise the bar of competition and continually meet the expectations of shareholders."

"An outstanding result of this magnitude is a clear testimony to the ability of the Zenith Brand to sustain its place as the foremost bank in the country. Zenith Bank has one of the best assets qualities in the banking industry as evident in the low ratio of non performing loans to total loans of 1.79 per cent as at June 2007,"the statement added.

Zenith Bank was in January 2007 adjudged the most customer-focused bank in Nigeria from a survey conducted by 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.

In 2005, Zenith was named ‘The Most Respected Bank in Nigeria’ from a survey conducted by PriceWaterHouseCoopers. That year also, the bank won the ‘Bank of the Year’ award from The Banker magazine, a publication of the Financial Times of London.

Late last year, the bank launched a $10-million mortgage scheme targeted at the middle- and low-income earners in some parts of Nigeria.

The launch of the programme which is run in conjunction with some other banks is being executed by the Development Credit Authority (DCA), a USAID development credit authority programme, will provide Nigerians resident in Lagos , Abuja , Kano and Port Harcourt with medium or long-term mortgage loans to purchase primary residences.