Zenith Bank Plc achieved a significant milestone on the Nigerian Exchange (NGX) this week, as its total market valuation surged past the ₦2 trillion threshold. The landmark was reached following a strong rally in the bank's stock on Thursday, April 10th, driven by growing investor demand ahead of its upcoming Annual General Meeting (AGM) and dividend payment confirmation.
The financial services group's share price climbed by over 4%, or 402 basis points, to close at ₦49.20 per share during Thursday's trading session. Market data from the NGX indicated robust activity, with more than 30.204 million units of Zenith Bank shares, valued at approximately ₦1.446 billion, changing hands. This pushed the total market capitalization of the bank's 41.069 billion outstanding shares up by 4.02% to settle at ₦2.020 trillion, nudging the stock price closer to its 52-week high.
Investor enthusiasm appears linked to the forthcoming AGM scheduled for April 29, 2025, where shareholders and the board of directors will convene to consider and approve key resolutions, including the final dividend payment for the 2024 financial year. Zenith Bank has proposed a final dividend of ₦4 per share. If approved, this would bring the total dividend distribution for the 2024 fiscal year to ₦5 per share, rewarding shareholders for a year of strong performance.
Confidence in the bank is heavily underpinned by its stellar financial results for 2024. Zenith Bank reported a substantial 66.7% year-on-year increase in its Profit Before Tax (PBT), reaching ₦1.33 trillion. Despite facing a one-off levy on Foreign Exchange (FX) revaluation gains, which resulted in a windfall tax charge of ₦63.31 billion and contributed to a total tax expense of ₦293.96 billion, the bank's Profit After Tax (PAT) still saw impressive growth. PAT expanded by 52.6% year-on-year to ₦1.03 trillion, solidifying Zenith Bank's position as the most profitable bank within Nigeria's elite Tier-1 category for 2024.
Market analysts have highlighted the bank's resilience across various financial metrics. Many pointed to its effective management of interest-earning assets, noting that the bank successfully repriced its loans in alignment with the prevailing interest rate environment, which significantly boosted its top-line revenue. Furthermore, despite the challenging economic landscape and associated risks in 2024, Zenith Bank demonstrated improved asset quality. Its robust risk management frameworks also contributed to a stronger Capital Adequacy Ratio (CAR), which improved to 25.6% from 21.7% recorded in 2023.
Reflecting this positive performance and outlook, several stockbroking firms have continued to issue "buy" ratings on Zenith Bank's stock, particularly as the market anticipates the release of its first-quarter earnings report for 2025. Looking further ahead, analysts at Cordros Capital Limited have expressed expectations that increased credit creation, potentially supported by anticipated interest rate cuts later in the year, will likely drive further growth in the bank's interest income.
Zenith Bank's successful crossing of the ₦2 trillion market capitalization mark serves as a testament to its strong financial footing, robust performance, and the positive sentiment it currently commands among investors in the Nigerian market.