We at Ugometrics are yet to review Zenith Bank’s latest results as we await more details that should help give insights for better analytics. However, some analysts have given their opinion already;
Banking Analyst at Renaissance Capital (RenCap), Mr. Adesoji Solanke noted that given the revenue and cost pressures, there were clear challenges to Nigerian banks’ earnings growth delivery capabilities.
Solanke commended Zenith Bank over the strong credit growth of 26 per cent year-on-year and 13 per cent quarter-on-quarter in the fourth quarter of 2013. This, he revealed was largely driven by power sector deals.
He however added: “Overall, these were decent numbers from Zenith Bank in context of the challenging operating environment for the Nigerian banks.
“With 19 per cent of its total assets now sitting as cash balances in zero-to-low interest yielding accounts at the CBN, Zenith’s ability to still deliver RoA in excess of three per cent is commendable.”
To analysts at BGL Securities Limited, the bank exceeded expectations, especially with the prevailing monetary tightening environment that was expected to impact negatively on financial performance of most banks.
“Revenue growth was driven by an increase in customers’ deposits which the bank used judiciously in creating higher margin risk assets to limit the effects of regulatory policies,” BGL added.
To CSL Securities Limited, a division of First City Monument Bank, the Zenith Bank 2013 Full year results were in line its estimates, adding that it showed strong resilience in the face of regulatory changes to tariffs and the CBN’s policy changes.
“We have a hold rating on Zenith with a target price of N23.00,” it added.
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