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Zenith Bank Conference Call Earnings Presentation -the takeaways

Zenith Bank Plc held its H1 2018 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.

The management of the bank in its review of the operating environment stated that with the improving macro-economic environment, Nigeria remains Africa’s largest economy with strong sectors and significant opportunities. Nigeria continued to record improvement in foreign reserves as it grew by 3.2% QoQ from $46.3bn recorded at the end of Q1 2018 to $47.8bn recorded at the end of Q2 2018 while exchange rate has remained relatively stable.

Zenith Bank Plc recorded a gross earnings of N322.20bn in H1 2018 as against N380.44bn in H1 2017, down by 15.31% YoY. The drop in earnings can be attributed to decline in interest income and trading income which was due to the lower yielding environment in 2018 compared to 2017. The bank’s Profit After Tax increased by 8.52% YoY from N75.32bn in H1 2017 to N81.74bn in H1 2018.

Source: TheAnalyst

The bank’s balance sheet/statements of financial position reflected that it recorded drops in its balance sheet items such as total assets and shareholders’ fund. The stated that it currently focuses on efficiency and risk management for superior performance rather than on size. Thus, building a shock-proof balance sheet.

At the close of trading today, the share price of Zenith Bank Plc dropped by a tick size of -0.84% to close at N23.75k from N23.95k previous close price.

Source: TheAnalyst

In a nutshell, below are the key takeaways from the H1 2018 earnings presentation made by the bank’s management;

1. The bank is optimistic that its H2 2018 performance will be slightly better than its H1 2018 performance.

2. The bank plans to drive profitability with its competitive advantage over its key growth target sectors

3. As part of its strategy for driving its vision, it plans to deepen its retail market penetration by leveraging on its retail platforms

4. Its Subsidiaries contribution to revenue improved YoY from 8.5% to 12.9% in H1 2018; and

5. Recorded a remarkable growth in both value and volume of electronic product transactions, resulting in a 87% growth in income on electronic products