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ZENITH BANK BOOSTS SHARE OFFERING WITH HUGE DISCOUNTS

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ZENITH BANK BOOSTS SHARE OFFERING WITH HUGE DISCOUNTS

Zenith Bank Plc is offering its ongoing hybrid rights and public offers at the bank’s lowest price range, locking in about 32 per cent gain in potential immediate return for existing shareholders and new investors.

Nigeria’s largest bank by profit, Zenith Bank is offering a rights issue of 5.233 billion ordinary shares of 50 kobo each at N36 per share. The shares were pre-allotted to existing shareholders on the basis of one new ordinary share for every six existing ordinary shares held as at the close of business on Wednesday, July 24, 2024.

The bank is also simultaneously offering 2.767 billion ordinary shares of 50 kobo each in a public offer to the general investing public at N36.50 per share. Minimum subscription is 250 shares, meaning that with N9,125.00, one can be a co-owner of Nigeria’s leading bank. Application list for the offers, which opened on August 01, 2024, is scheduled to close on September 09, 2024.

A review of the trading history of Zenith Bank at the stock market indicated that the bank’s shares had recently traded as high as N47.35 per share, a price range that market pundits believe is a fair price for the stock.

This recent price range implies a discount of about 32 per cent locked into the ongoing hybrid rights and public offers.

With earnings per share of N21.55 for the 2023 business year, Zenith Bank’s offers carry earnings yield of about 60 per cent, the most attractive value addition among peers and competing offers. This simply means that beyond its industry-leading dividend payout, investors in Zenith Bank has significant value creation in the investment that can sustain above-average, long-term returns.

At the latest audit, Zenith Bank led the banking industry with a pre-tax profit of N796 billion and profit after tax of N677 billion in 2023. The bottom-line performance was driven by aggressive business expansion and brand adoption across domestic and foreign markets. The bank’s gross earnings crossed two milestones from N946 billion in 2022 to N2.13 trillion in 2023. There are only three Nigerian banks with N2 trillion gross earnings.

First quarter results for 2024 already indicated that the bank could surpass the 2023 performance in the current year. Gross earnings jumped by 189 per cent from N270 billion in first quarter 2023 to N781 billion in first quarter 2024. Profit before tax tripled by 267.8 per cent to N320 billion in March 2024 as against N87 billion recorded in March 2023. After taxes, net profit leapt by 291 per cent from N66 billion to N258 billion. Earnings per share rose simultaneously from N2.10 to N8.22.

Analysts believe Zenith Bank has entered a new phase of phenomenal growth. Annualised, the first quarter 2024 performance indicates that the bank’s net profit could surpass a trillion, with potential earnings per share that almost covers the cost of buying into the ongoing offers. Such fundamental performance usually triggers a rally for a stock, underscoring the belief by investment experts that the bank could set a new all-time high within the next few months.

Zenith Bank has been adjudged the Best Commercial Bank in Nigeria for the fourth consecutive year by the prestigious World Finance Banking Awards. It has also been honoured for the past three years has the Best Corporate Governance in Nigeria. These awards were revalidated in the Summer 2024 issue of World Finance Magazine, which provides comprehensive coverage and analysis of the financial industry, international business, and the global economy.

The awards recognised the bank’s financial performance, customer service, sustainability initiatives, and corporate governance practices.

Established in May 1990, Zenith Bank began operations in July 1990. The bank became a public limited company on June 17, 2004, and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004, following a successful initial public offering (IPO). In 2013, the bank listed $850 million worth of shares at $6.80 each on the London Stock Exchange (LSE).

Founded by Jim Ovia in 1990, Zenith Bank has grown into one of Africa’s leading financial institutions. The bank’s philosophy is to remain customer-centric with a clear understanding of its market and environment. Zenith Bank’s excellent performance has earned numerous awards, including being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the 14th consecutive year in the 2023 Top 1000 World Banks Ranking, published by The Banker Magazine; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022; and Most Sustainable Bank, Nigeria, in the International Banker 2024 Banking Awards.

In March 2007, Zenith Bank was licensed by the Financial Services Authority (FSA) of the United Kingdom to establish Zenith Bank (UK) Limited. The bank also has subsidiaries in Ghana, Sierra Leone, The Gambia, and a representative office in China. The bank plans to expand further into Africa, Europe, and Asia.

Zenith Bank has been a pioneer in digital banking in Nigeria, deploying Information and Communication Technology (ICT) infrastructure to create innovative products that meet customer needs. The bank is a leader in deploying various banking technologies, and the Zenith brand is synonymous with state-of-the-art banking technologies. Driven by excellence and global best practices, the bank combines vision, banking expertise, and cutting-edge technology to create products and services that meet customer expectations, enable businesses to thrive, and grow customer wealth.

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Business

CBN Revives Key Economic Reports for Transparency and Growth

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August 13, 2024

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– Purchasing Managers’ Index (PMI) reintroduced
– Business Expectation Survey (BES) and Inflation Expectation Report revived
– Reports to be released periodically on CBN’s website

The Central Bank of Nigeria (CBN) has announced the reintroduction of key economic reports, demonstrating its commitment to transparency and accountability.

This move is part of the CBN’s ongoing data enhancement initiative, aimed at providing stakeholders with timely and accurate insights into Nigeria’s economic performance.

The revived reports include the PMI, which evaluates the health of various sectors, and the business and household expectations reports, offering valuable insights into perceptions and outlooks. These reports are essential tools for understanding the country’s economic climate and fostering informed decision-making.

According to Sidi Ali, Acting Director of Corporate Communications at CBN, “This initiative is part of the Bank’s broader efforts to enhance transparency, promote informed decision-making, and support economic growth.” The reports will be accessible to the public, policymakers, and the business community on the CBN’s website.

The CBN encourages economists, analysts, investors, and the media to utilize these reports to gain a deeper understanding of Nigeria’s economic dynamics. This will foster a more inclusive economic discourse and promote economic growth.

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Wema Bank Empowers 100,000 MSMEs in Ekiti State

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August 7, 2024

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Launches Ekiti-Wema MSME Empowerment Programme for Youth and Businesses

… Launches Ekiti-Wema MSME Empowerment Programme for Youth and Businesses

Wema Bank, Nigeria’s foremost innovative bank and pioneer of Africa’s first fully digital bank, ALAT, has partnered with the Ekiti State Government through the Ministry of Wealth Creation and Employment to launch the Ekiti-Wema MSME Empowerment Programme for youth and businesses in Ekiti State.

Launched on Monday, August 5th, 2024, the Ekiti-Wema MSME Empowerment Programme is an initiative designed to train and empower 100,000 youth and Micro, Small and Medium Enterprises (MSMEs) operating within Ekiti State with business management, digital empowerment and finance management skills for success. Leveraging the immense potential of Nigerian youth and the economic opportunities presented by MSMEs, the Ekiti-Wema MSME Empowerment Programme is strategically curated to help the youth of Ekiti State maximise their potential while equipping businesses for sustainable growth and productivity, towards boosting the state’s macroeconomic conditions.

The Ekiti-Wema MSME Empowerment Programme is set to be executed through virtual and physical training sessions cutting across business management, digitalisation, and financial management, additionally providing access to mentorship support from experienced and successful entrepreneurs from within and outside Nigeria. These participants will also receive a certificate of participation upon completion of their training course. Beyond the trainings, participants will also gain access to market and assistance in securing finances to put their learnings to practice and scale their operations. This comprehensive approach ensures that the Programme not only enhances the capabilities of youth and MSMEs in Ekiti State but also facilitates their sustained growth and contribution to the economic development of Ekiti State.

Reiterating the Bank’s commitment to pioneering solutions, initiatives and partnerships for the growth and success of Nigerians, Wema Bank’s Executive Director of Retail and Digital Business, Tunde Mabawonku, encouraged youth and businesses in Ekiti State to seize this unique opportunity for their success. “As Nigeria’s most innovative bank, we have committed to concerting efforts, pooling resources where ideal and going the extra mile in developing solutions that address the needs of our people and ultimately empower them to thrive. Our robust portfolio attests to this deep-rooted commitment and with the Ekiti-Wema MSME Empowerment Programme, we are extending the reach of our positive impact, positively enhancing the lives and businesses of the Ekiti State people and empowering them with the skills, knowledge, and expertise needed to thrive in today’s competitive market. Our approach is granular yet comprehensive, bringing tailored solutions for growth to the youth and businesses of Ekiti State right within their vicinity. We hope that through this initiative, Ekiti State will become a hub of productivity and economic buoyance, and the domino effect of this economic boost will translate on the national scale, improving our nation’s macroeconomic indicators for the best”, Mabawonku said.

The Ekiti State Honourable Commissioner for Wealth Creation and Employment, Otunba Kayode Fasae, added, “Our goal with this partnership with Wema Bank is to implement a two-pronged approach that contains two missing key ingredients of wealth creation and employment generation, which are skill development and finance. Wema Bank has been extremely supportive in working with the Ekiti State Government for the success of our people. You would recall that in 2020, the Bank collaborated with the State to sponsor the training of 2500 youth under the Central Bank of Nigeria’s AgriBusiness Small Medium Enterprise Investment Scheme (AGSMEIS) and now, four years later, we are proud to announce the birth of yet another groundbreaking partnership with the Bank, the Ekiti-Wema MSME Empowerment Programme. We reiterate our unwavering commitment to maximise the deliverables of this Programme to serve as a veritable intervention platform for skill development and panacea for employment and wealth creation”.

Wema Bank continues to expand its network, partnering with reputable individuals, institutions, and entities on state and federal levels to provide viable solutions for Nigerians across the world, empowering them to thrive in both personal and professional endeavours. With the Ekiti-Wema MSME Empowerment Programme, Wema Bank is set to transform 100,000 lives and businesses across Ekiti State.

Interested Youth and Businesses in Ekiti State are to visit https://wema-ekitisme.alat.ng/register to register for the Ekiti-Wema MSME Empowerment Programme.

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