Zenith Bank Plc has posted the highest gain in a single trading session, in over two months since the famous circuit breaker on November 12, 2020.
According to data from the Nigerian Stock Exchange (NSE), the share price of the bank rose by 4.84%, from N24.80 recorded at the close of trading yesterday, to N26. Market capitalization also gained N37.7 billion as at the close of trading today.
The gains can be attributed to the recent impressive financial performance recorded by Zenith Bank, evident by its FY 2020 results, where the bank posted a Profit After Tax (PAT) of N230.6 billion which represents a 10.4% increase compared to N208.8 billion recorded in 2019 – A result that made it the first Nigerian bank to cross the N200 billion threshold at the time.
The impressive financial performance was also consolidated by a proposed final dividend payment of N2.7 for FY 2020. In lieu of this, it is understandable that the announcement effect might have triggered an increase in the demand for the Bank’s shares which resulted in an upward pressure on price.
For example, while the bank traded 21,749,034 units of shares yesterday, comparatively, it recorded a total of 52,673,009 units’ today- the day the bank’s FY 2020 result was released.
What you should know:
- Nairametrics had earlier reported a circuit breaker, when the NSE All-Share Index rose beyond the threshold of 5% in November 2020.
- On the circuit breaker day, Zenith Bank share price gained 9.96% in just one day.
- Based on its recent financials, Zenith Bank Plc recorded a 34% surge in its asset base, from N6.35 trillion to N8.48 trillion, making it Nigeria’s biggest bank by asset so far.
- Investors will be anticipating the results of Access and GT Bank who over the past few years have proved to be heavy competitors to Zenith Bank.
