Zenith Bank Plc has experienced a significant rise in market value, reaching near its 52-week high ahead of its eagerly awaited fourth-quarter earnings report. The bank’s share price climbed by 4.5% to N46.50 on Thursday, driven by robust investor demand for tier-1 banking stocks on the Nigerian Exchange. As a result, Zenith’s market capitalisation has risen to N1.459 trillion, coming within 1.8% of its 52-week high.
Analysts attribute the surge in Zenith’s stock price to strong investor interest, fueled by expectations of solid earnings for the full year of 2024. According to a statement from the Nigerian Exchange, the bank’s performance in the first nine months of 2024 has been impressive, with its pretax profit nearly doubling to N1 trillion.
Zenith Bank has entered a “close period” starting January 1, 2025, which restricts trading by insiders until the bank releases its Q4 earnings. Despite this, the market’s positive sentiment remains intact, with investors eagerly anticipating the final results.
Forecasts from analysts at CardinalStone Securities predict that Zenith will close the year with a profit after tax of N1.1 trillion, driven by a substantial increase in net interest income and strong non-interest revenue from trading activities. The analysts noted that this growth would be largely attributed to a triple-digit rise in net interest income (NII) and solid non-interest revenue (NIR).
Looking forward to 2025, analysts suggest that Zenith’s growth will be influenced by interest rate fluctuations and its strategy for expanding risk assets. Strong trading gains are expected to further contribute to the bank’s earnings, setting the stage for continued success in the coming year.
With investor confidence high and expectations for another stellar earnings season, Zenith Bank is poised to maintain its strong performance and retain its position as a leader in the Nigerian financial sector.