Zenith Bank forges ahead despite its harsh operating environment in Nigeria. Zennith bank is the third largest bank in Nigeria and it has an asset base after Ecobank and while First bank Nigeria remains the No.1 bank with massive potential for improved growth oweing to the banks governance and efficiency in operation.
Ever since 2010 audited report of the bank, Zenith bank has observed tremendous growth in every or almost all aspect of its business processes and also growing its gross earnings to a 4 years compounded annual growth of 20.31% and improving its profit after tax by an impressive 27.70% for a 4 year CAGR.
Zenith banks growth rate is undoubtedly impressive and the bank is believed hasn't reached its full potential oweing to the fact that Nigerian economy is still expanding and this expansion is an opportunity for massive growth in the nearest future.
Based on the analysis and valuation done on Zenith bank, it is recommended to buy the company's shares at this time the shares is still very low at a price of #21.67 as the company is expected to maintain a positive bottom line position even in the midst of economic turbulence.
It is also important to note that the growth income of the bank , from its core business activities is expected to have an interest income of 4 years CAGR growth rate of 25.27% to a staggering amount of #313.42 Billion in FY 14 from #127.26 Billion in FY'10. In addition to that, the bank still continues to maintain a positive net interest income margins of 6.34% in FY'10 while its highest recorded interest income margins was reported in FY'13 at 8.37%.