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I am introducing a new series in my blog called Financial Match up. Here I will match up companies in the same line of business against each other for you to see who you think did better. I will be using certain metrics which I believe go a long way in showing why one company is doing better than the other.

To kick start this match up is GTB vs Zenith Bank. Both companies have announced their results for 2012 and announced impressive top and bottom lines. However who do you think performed better in terms of returns for shareholders money and why did they do better. Well, see below and be the judge;

  2012 FINANCIAL STATEMENTS    
    GTB  ZENITH BANK 
I PROFIT AND LOSS N’m N’m
A REVENUE               188,819                 244,070
B INTEREST INCOME               130,137                 160,519
C INTEREST EXPENSE                 28,459                   34,906
D FEES EARNED                 44,165                   48,965
E FEE EXPENSE                    2,208  
F OTHER INCOME                 11,750                   28,685
G OPERATING INCOME               155,385                 203,263
H STAFF COST                 20,967                   48,168
  STAFF COST PER HEAD                            6                              5
I DIRECTOR EXPENSES                       496                         742
J DEPRECIATION                    7,798                   12,252
K OTHER EXPENSES (INCLUDES H-J)                 70,645                 118,262
L LOAN LOSS EXPENSES                 19,004  
M DIMINUTION OF ASSETS                       141                   24,303
N PROFIT BEFORE TAX (INCLUDES  G-M)                 65,596                   60,698
O TAXATION                 15,709                   16,509
P PROFIT AFTER TAX (INCLUDES M-N)                 49,887                   44,189
       
       
       
II BALANCE SHEET    
  ASSETS    
A LOANS & ADVANCES               715,944                 832,828
B TREASURY BILLS               256,815                 516,142
C ON-LENDING FACILITIES                                                43,199
D INSURANCE RECEIVABLES                                                      721
E INVESTMENT SECURITIES               109,387                 309,459
F INVESTMENT PROPERTY                                                  7,403
G PP&E                 57,560                   68,838
H TOTAL ASSETS           1,611,880             2,309,427
  LIABILITIES                               
I CUSTOMER DEPOSITS           1,033,068             1,653,570
J ON-LENDING FACILITIES                                                49,370
K BORROWINGS               236,743                   20,766
L OTHER LIABILITIES                 61,986                 180,915
M RETAINED EARNINGS                 98,785                   74,137
N TOTAL LIABILITIES (INCLUDES I-M)           1,373,100             1,929,092
O NET ASSETS               238,780                 380,335
       
P ORDINARY SHARES OUTSTANDING (MILLIONS)                 29,431                   31,396
       
       
III CASHFLOW STATEMENT    
    N’m N’m
A OPERATING CASHFLOWS               153,950                   43,778
B PURCHASE OF CAPEX                 19,836                   14,866
C PURCHASE OF INTANGIBLES                       122                         313
D FREE CASHFLOW (A-B-C)               133,991                   28,599
E CASH AND CASH EQUIVALENT               607,108                 563,718
       
IV KEY RATIOS    
A EARNINGS PER SHARE                        1.7                        1.41
B NET ASSET PER SHARE 8.1 12.1
C RETURN ON EQUITY 20.9% 11.6%
D RETURN ON ASSETS 3.09% 1.91%
E OPERATING INCOME AS A PERCENTAGE OF GROSS INCOME 82.29% 83.28%
F STAFF COST AS A PERCENTAGE OF OPERATING INCOME 13.49% 23.70%
G DEPRECIATION AS A PERCENTAGE OF OPERATING INCOME 5.02% 6.03%
H OVERHEAD AS A PERCENTAGE OF OPERATING INCOME 45.46% 58.18%
I OPERATING PROFIT AS A PERCENTAGE OF OPERATING INCOME 42.22% 29.86%
    STAFF STAFF
J STAFF STRENGTH                     3,565                     8,812
       

5 COMMENTS

  1. Am happy for this financial review,i have an account with gtb and i really enjoy their service compare to other banks though they have their own lapses and weakness but they keep to customer satisfaction so i think this is what bring their success

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