Zenith Bank Plc’s stock price surged by 4.5% on Thursday, reaching N46.50, as investors ramped up demand for top-tier banking shares ahead of the bank’s fourth-quarter 2024 earnings release.
The rise in market value pushed Zenith Bank’s capitalisation to N1.459 trillion, placing it within 1.8% of its 52-week high on the Nigerian Exchange.
The bank has emerged as a top pick for investors, driven by strong market sentiment surrounding tier-1 lenders. Analysts attribute this to Zenith’s impressive financial performance and its reputation for resilience in navigating market dynamics.
Zenith Bank’s management has already declared a close trading period for connected stakeholders, which began on January 1, 2025. This restriction will remain in place until the Q4 2024 earnings are published.
In the first nine months of the 2024 financial year, Zenith Bank recorded a pretax profit of N1 trillion, representing a year-on-year growth of 99%, according to its regulatory filing on the Nigerian Exchange.
Building on this robust performance, analysts at CardinalStone Securities Limited project the bank’s profit after tax for the full year 2024 to reach N1.1 trillion, translating to an earnings per share of N35.25.
“This growth is expected to be primarily driven by a triple-digit increase in net interest income (NII), alongside strong non-interest revenue (NIR), bolstered by solid trading gains,” CardinalStone Securities noted in a report.
The firm highlighted Zenith Bank’s resilient trading portfolio and strategic management of interest rate dynamics as critical factors sustaining its profitability. The bank’s readiness to expand risk assets in 2025 and potential gains from trading activities are also expected to bolster earnings.
Looking ahead, analysts believe Zenith Bank’s performance in 2025 will be shaped by its ability to leverage interest rate dynamics and grow its loan portfolio. Strong trading gains are anticipated to provide additional support to its earnings.
With its current momentum, Zenith Bank is positioned to close the financial year on a strong note, reaffirming its status as a market leader and a preferred choice for investors in Nigeria’s banking sector.
