Zenith Bank plc , one of the biggest and most resilient among Nigeria’s Tier-1 banks performed excellently well as seen in its latest audited account, closing the year 2023 with robust growth in top and bottom lines. It is as if the market expected such giant leap in its performance, perhaps judging by its nine-month numbers, resulting in an expected surge in its share price by 61% year-on-year, resulting in a positive real return of 25%.
The stock attained an all-time high price of N47.35 per share on January 9, 2024, from where it has fallen by over 15.5% from that high point to N40.00 each at which it is now trading.
A bullish reversal candle stick was formed on the April 2 when the Nigerian Exchange resumed from the Easter holidays on Tuesday, signaling downtrend and ever since, the market has been in the southward direction.
Money flow currently reads 37.75 points which indicates that serious funds left the market, as the stock currently trades below the T-Line ( 8-Day Moving Average) after trading there for the Medium Term and series of test before a final breakthrough towards the downtrend.
Relative Strength Index has been going down but is yet to hit the oversold zone as it reads 49.88 currently, meaning there is a large capacity for the downtrend to continue. MACD is above the signal, though its era of mounting the signal line is coming to an end as the signal line is taking the top position (an indication of downward trend).
Suggested Entry Point/Buy Range: There is a strong support zones around N33.80 and 31.80 per share, Mid to Long-Term investors can pitch their tent around these entry zones so as to make the most of the bear market.
This stock is promising, and if you must partake in its promises, it must be via patience. Follow your trade plan and do not be carried away by all of the rumours and happenings on Customs Street.
Zenith Bank Plc, posted its audited accounts for the fiscal year 2023, showcasing a whooping Gross Earnings of N2.13tr, representing 125.45% growth over the N945.55bn recorded in the previous year. Zenith Bank showed an impressive leap in interest income, which is the lifeblood of every bank, growing from N540.17bn recorded at the end of 2022 to close at N1.14tr; representing a 111.91% surge.
It posted an equally mind blowing and record breaking Profit Before Tax of 179.63%, hitting N795.96bn in 2023 up from N284.65bn recorded in 2022; while Profit After Tax (PAT) was up 202%, rising from N170.3bn in 2022 to N607.7bn in the present year. Profit for the period was driven by the elevated Interest Income and Foreign Exchange gains. Shareholders’ improved by 68.49%, Increasing from N1.38 trillion in 2022 to N2.32tr in 2023.
Corporate Action: The directors have recommended a Final Dividend of N3.50, while Qualification Date is April 25, 2024; and Payment Date: May 8,2024.
