By Ayomide Otitoju
Zenith Bank Plc has recorded a rise in market value as investor interest in top-tier lenders on the Nigerian Exchange grows ahead of the bank’s fourth-quarter 2024 earnings release.
The bank’s share price climbed 4.5% on Thursday to close at ₦46.50, reflecting strong demand for banking stocks. This surge in buying activity pushed Zenith Bank’s market capitalization to ₦1.459 trillion. Despite the increase, the bank is trading at a 1.8% discount to its 52-week high, signaling continued investor optimism.
Ahead of its earnings announcement, Zenith Bank implemented a closed trading period effective January 1, 2025, restricting insiders and connected stakeholders from trading its shares. The restriction will be lifted once the results are published.
Zenith Bank reported a pre-tax profit of ₦1 trillion for the first nine months of 2024, representing a 99% year-on-year increase, according to regulatory filings. Analysts at CardinalStone Securities Limited project the bank will end the financial year with a profit after tax of ₦1.1 trillion and earnings per share of ₦35.25.
“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 as the bank continues to maintain a resilient trading portfolio,” CardinalStone noted.
Looking ahead to 2025, the investment firm predicts Zenith Bank’s performance will hinge on interest rate movements and its capacity to expand risk assets. Additionally, robust trading gains are expected to provide supplementary support to the bank’s earnings.
With a strong performance record and investor confidence high, Zenith Bank remains a top pick among market participants in Nigeria’s banking sector.
