Financial Analysis Of Zenith Bank 2007
...4
History 4
Business Structure 4
Share holder structure 5
The Last Offer 6
Board of Directors/Management 6
Services/ Company Business 7
Score Cards 7
Awards & Achievements 8
Competitive Advantages 8
Strong Reputation 8
Impressive Financial Performance 9
Market Share 9
Awards and Ratings 9
Highly Diversified Revenue Base 9
Industry/ Sector Analysis: Challenges & Risk Factors 10
Challenges of the Nigerian Banking Industry Post-Consolidation 10
Perceived Market Risk 11
Economic/Industry risk 11
SWOT (Strength, Weaknesses, Opportunities and Threats) Analysis 12
Strengths & Opportunities 12
Weaknesses & Threats 12
Financial Analysis 12
Performance Overview (2003-2007) 12
Gross Revenue and Profit-After-Tax 12
Total Assets and Total Deposits 13
Asset Quality, Liquidity and Capital Adequacy 14
Earnings Performance 15
Investment Issues 19
Competitors Analysis 20
Zenith Bank and the Nigerian Stock Market 20
Recommendation 23
Sell/Buy Conclusion 24
References 24
Executive Summary
• Zenith Bank’s 3rd Public Offering (since inception) opened on Thursday, December 6, 2007. It is one of the foremost Banks returning to the Primary market to source for fresh equity capital as a means of augmenting and sustaining its cutting-edge competitive strategies in information technology and growing demands in real sector financing. The Bank is offering a hybrid Offer of 1.763bn Ordinary Shares of 50k at N38.90k and Rights Issue of 1.655bn Ordinary Shares of 50k at N36.90k.
• According to the Bank in its Offer prospectus, the strategic focus of the Offer is the real sector financing via project & infrastructure finance which accounts for 50 per cent of the expected Offer proceeds. The remaining proportion (50 per cent) will be channelled to expand branch network, upgrade ICT and support working capital.
• Zenith Bank has been a consistent...
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