Download 2011 result: Shareholders restate confidence in Zenith`s management

2011 result: Shareholders restate confidence in
Zenith’s management
Shareholders of Zenith Bank Plc have expressed their pleasure on the
financial performance delivered by the bank for the year ended 31st
December, 2011, saying that it attested to the doggedness of the
management team.
A cross section of the shareholders that spoke with Vanguard noted
that the result indicates the determination of the board and
management to ensure that the bank retains its leadership position in
the industry.
They added that the performance was heart warning considering the
challenges the sector has gone through in recent times, adding that it
has further given them the cause to be confident of their investments
in the banking sector.
Zenith bank has a fortnight ago announced revenue growth of 26.8 per
cent from N192.49 billion reported in 2010 to N244 billion in the
review period.
Also, the bank’s profit before taxation went up by 21 per cent to N60.7
billion from the previous N50.03 billion, while after tax profit witnessed
18 per cent growth to N44.2 billion as against N37.41 billion reported
in corresponding period of 2010.
Commenting on the results, the President, Association for the
Advancement of the Rights of Nigerian Shareholders (AARNS), Dr.
Faruk Umar, noted that the result was in keeping to the tradition
passed on to the new management by the founding chief executive
officer, Jim Ovia, adding that the management has shown that it can
sustain the tradition of staying above their peers in the industry.
Umar noted that the 95 kobo dividend should be commended, saying
that “sooner rather than later, the era of kobo dividend would have no
place in the accounts of Zenith Bank.”
“It is a fantastic performance that should be commended. Despite the
difficult environment, Zenith Bank posted higher profit and declared
higher dividend. It shows the bank has a good board and
management,” he said.
Speaking in the same vein, the General Secretary, Independent
Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, said
the result would be the benchmark for other banks as it would
stimulate pressure on other banks to perform.
According to him, given the challenges in the banking sector, they
were not expecting 95 kobo dividend. “The result is heartwarming
because we were not expecting this impressive performance on the
face of the banking reforms. The results will stimulate other banks to
also perform well and reward shareholders accordingly,” he said.
Also speaking, Mr. Oderinde Taiwo of Proactive Shareholders
Association of Nigeria noted that the result has brought hope to the
investors and would also impact on the activities and price movement
in the shares of the bank.
BY NKIRUKA NNOROM
Vanguard March 20, 2012