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Zenith Bank

LSE:ZENB
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZENB
LSE
NGN656B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Zenith Bank Plc, together with its subsidiaries, provides banking and other financial products and services to corporate and individual customers in Nigeria, rest of Africa, and internationally. The last earnings update was 3 days ago. More info.


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ZENB Share Price and Events
7 Day Returns
0%
LSE:ZENB
1%
GB Banks
0.6%
GB Market
1 Year Returns
0%
LSE:ZENB
-8.7%
GB Banks
1.1%
GB Market
ZENB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zenith Bank (ZENB) 0% 0% 0% 0% 20.8% -61.3%
GB Banks 1% 4.3% 4.4% -8.7% 17% -11.2%
GB Market 0.6% 2.6% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • ZENB outperformed the Banks industry which returned -8.7% over the past year.
  • ZENB underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
ZENB
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Zenith Bank's competitors could be found in our database.

Value

 Is Zenith Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zenith Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zenith Bank.

LSE:ZENB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= NGN32.72 * 20.4%
NGN6.67
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. NGN32.72
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:ZENB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 30%) (186.39%))
1.246
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.246 * 5.96%)
8.65%

Discounted Cash Flow Calculation for LSE:ZENB using Excess Returns Model Model

The calculations below outline how an intrinsic value for Zenith Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:ZENB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (20.4% – 8.65%) * NGN32.72)
NGN3.84
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= NGN3.84 / (8.65% - 1.23%)
NGN51.68
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= NGN32.72 + NGN51.68
NGN84.4
LSE:ZENB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:ZENB represents 0.13876x of NGSE:ZENITHBANK
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.13876x
Value per Share
(Listing Adjusted, USD)
= Value per Share (NGN) x Listing Adjustment Factor
= NGN 84.40 x 0.13876
$11.71
Value per share (USD) From above. $11.71
Current discount Discount to share price of $2.90
= -1 x ($2.90 - $11.71) / $11.71
75.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Zenith Bank is available for.
Intrinsic value
>50%
Share price is $2.9 vs Future cash flow value of $11.71
Current Discount Checks
For Zenith Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Zenith Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Zenith Bank's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zenith Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zenith Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:ZENB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in NGN NGN6.25
NGSE:ZENITHBANK Share Price ** NGSE (2019-04-18) in NGN NGN20.9
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zenith Bank.

LSE:ZENB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NGSE:ZENITHBANK Share Price ÷ EPS (both in NGN)

= 20.9 ÷ 6.25

3.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zenith Bank is good value based on earnings compared to the GB Banks industry average.
  • Zenith Bank is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Zenith Bank's expected growth come at a high price?
Raw Data
LSE:ZENB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
3.3%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:ZENB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.34x ÷ 3.3%

1.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zenith Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Zenith Bank's assets?
Raw Data
LSE:ZENB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in NGN NGN24.82
NGSE:ZENITHBANK Share Price * NGSE (2019-04-18) in NGN NGN20.9
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:ZENB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NGSE:ZENITHBANK Share Price ÷ Book Value per Share (both in NGN)

= 20.9 ÷ 24.82

0.84x

* Primary Listing of Zenith Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zenith Bank is good value based on assets compared to the GB Banks industry average.
X
Value checks
We assess Zenith Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Zenith Bank has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Zenith Bank expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zenith Bank expected to grow at an attractive rate?
  • Zenith Bank's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Zenith Bank's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Zenith Bank's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:ZENB Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:ZENB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 3.3%
LSE:ZENB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 9.2%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:ZENB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in NGN Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:ZENB Future Estimates Data
Date (Data in NGN Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 653,515 214,765 2
2021-12-31 592,562 210,914 8
2020-12-31 536,258 196,566 11
2019-12-31 496,386 195,776 8
LSE:ZENB Past Financials Data
Date (Data in NGN Millions) Revenue Cash Flow Net Income *
2019-03-31 458,180 -225,193 196,275
2018-12-31 457,185 -158,028 193,147
2018-09-30 445,788 -790 188,210
2018-06-30 452,526 -77,567 189,397
2018-03-31 446,070 -230,179 183,032
2017-12-31 422,730 -433,572 173,472
2017-09-30 392,548 -307,607 163,247
2017-06-30 399,821 -278,571 169,236
2017-03-31 352,745 -312,305 149,711
2016-12-31 331,269 -422,158 129,434
2016-09-30 324,133 -667,690 117,746
2016-06-30 281,186 -418,453 87,823

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zenith Bank's earnings are expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
  • Zenith Bank's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:ZENB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Zenith Bank Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ZENB Future Estimates Data
Date (Data in NGN Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 7.10 7.10 7.10 1.00
2021-12-31 6.71 7.91 5.29 7.00
2020-12-31 6.26 6.97 4.42 8.00
2019-12-31 6.27 6.38 6.05 6.00
LSE:ZENB Past Financials Data
Date (Data in NGN Millions) EPS *
2019-03-31 6.25
2018-12-31 6.15
2018-09-30 6.13
2018-06-30 6.17
2018-03-31 5.83
2017-12-31 5.53
2017-09-30 5.20
2017-06-30 5.39
2017-03-31 4.76
2016-12-31 4.12
2016-09-30 3.75
2016-06-30 2.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Zenith Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Zenith Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zenith Bank has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Zenith Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zenith Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zenith Bank's year on year earnings growth rate has been positive over the past 5 years.
  • Zenith Bank's 1-year earnings growth is less than its 5-year average (7.2% vs 17.9%)
  • Zenith Bank's earnings growth has not exceeded the GB Banks industry average in the past year (7.2% vs 42.2%).
Earnings and Revenue History
Zenith Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zenith Bank Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ZENB Past Revenue, Cash Flow and Net Income Data
Date (Data in NGN Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 458,180.00 196,275.00 111,800.00
2018-12-31 457,185.00 193,147.00 105,826.00
2018-09-30 445,788.00 188,210.00 100,964.00
2018-06-30 452,526.00 189,397.00 94,804.00
2018-03-31 446,070.00 183,032.00 94,546.00
2017-12-31 422,730.00 173,472.00 97,533.00
2017-09-30 392,548.00 163,247.00 77,325.00
2017-06-30 399,821.00 169,236.00 81,333.00
2017-03-31 352,745.00 149,711.00 78,251.00
2016-12-31 331,269.00 129,434.00 79,734.00
2016-09-30 324,133.00 117,746.00 90,025.00
2016-06-30 281,186.00 87,823.00 86,232.00
2016-03-31 291,901.00 95,083.00 89,678.00
2015-12-31 293,493.00 105,531.00 84,625.00
2015-09-30 316,211.00 111,374.00 90,869.00
2015-06-30 308,970.00 105,029.00 91,270.00
2015-03-31 289,494.00 103,283.00 90,224.00
2014-12-31 283,498.00 99,275.00 89,537.00
2014-09-30 266,994.00 95,046.00 89,363.00
2014-06-30 263,917.00 94,724.00 83,759.00
2014-03-31 257,999.00 91,989.00 77,459.00
2013-12-31 253,405.00 90,846.00 76,612.00
2013-09-30 239,181.00 103,204.00 116,100.00
2013-06-30 230,437.00 100,529.00 100,933.00
2013-03-31 229,227.00 102,509.00 86,632.00
2012-12-31 218,211.00 97,596.00 71,643.00
2012-09-30 194,041.00 64,170.00 104,494.00
2012-06-30 192,799.00 55,743.00 75,675.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Zenith Bank has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Zenith Bank used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Zenith Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Zenith Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zenith Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Zenith Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Zenith Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zenith Bank Company Filings, last reported 2 weeks ago.

LSE:ZENB Past Debt and Equity Data
Date (Data in NGN Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 780,888.00 1,223,076.00 1,166,257.00
2018-12-31 815,751.00 1,220,295.00 1,040,834.00
2018-09-30 777,904.00 1,270,732.00 957,706.00
2018-06-30 719,505.00 1,180,466.00 834,440.00
2018-03-31 735,246.00 1,214,170.00 1,216,740.00
2017-12-31 812,116.00 1,105,315.00 1,005,827.00
2017-09-30 767,690.00 1,087,098.00 845,902.00
2017-06-30 719,333.00 1,042,634.00 747,455.00
2017-03-31 687,858.00 814,712.00 751,353.00
2016-12-31 704,465.00 834,061.00 810,259.00
2016-09-30 695,596.00 958,626.00 720,558.00
2016-06-30 620,739.00 849,325.00 694,727.00
2016-03-31 621,073.00 645,343.00 597,013.00
2015-12-31 594,353.00 645,945.00 718,195.00
2015-09-30 571,501.00 444,343.00 729,375.00
2015-06-30 546,386.00 468,774.00 733,078.00
2015-03-31 526,430.00 411,011.00 860,691.00
2014-12-31 552,638.00 365,415.00 996,666.00
2014-09-30 523,932.00 298,129.00 782,534.00
2014-06-30 492,388.00 227,426.00 809,944.00
2014-03-31 528,398.00 131,116.00 813,856.00
2013-12-31 509,251.00 119,678.00 882,336.00
2013-09-30 482,509.00 92,641.00 766,095.00
2013-06-30 458,319.00 98,999.00 728,771.00
2013-03-31 486,225.00 84,228.00 614,125.00
2012-12-31 462,956.00 71,204.00 624,222.00
2012-09-30 421,307.00 76,304.00 288,576.00
2012-06-30
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Zenith Bank has an acceptable proportion of non-loan assets held.
  • Zenith Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Zenith Bank are broadly funded by customer deposits.
  • Zenith Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Zenith Bank has a low allowance for bad loans.
  • Zenith Bank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Zenith Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zenith Bank has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Zenith Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
13.4%
Current annual income from Zenith Bank dividends. Estimated to be 14.72% next year.
If you bought $2,000 of Zenith Bank shares you are expected to receive $268 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Zenith Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Zenith Bank's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:ZENB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:ZENB Future Dividends Estimate Data
Date (Data in NGN) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 3.38 2.00
2021-12-31 3.24 9.00
2020-12-31 3.00 10.00
2019-12-31 2.90 8.00
LSE:ZENB Past Annualized Dividends Data
Date (Data in NGN) Dividend per share (annual) Avg. Yield (%)
2019-02-19 2.800 12.490
2018-03-12 2.700 11.220
2017-02-27 2.020 9.360
2016-03-15 1.800 12.408
2016-01-15 1.800 15.356
2015-10-23 0.500 3.334
2015-10-15 0.500 2.854
2015-08-13 0.500 3.069
2015-07-15 0.500 2.965
2015-03-05 1.750 8.568
2014-03-11 1.750 8.247
2014-01-15 1.750 7.907
2013-04-03 1.600 7.612
2013-04-02 0.016 0.073
2012-07-25 0.950 5.258
2012-03-15 0.950 6.839
2012-03-09 0.950 7.142
2011-03-21 0.850 6.419
2011-01-17 0.850 5.475
2010-04-15 0.360 2.606
2010-01-15 0.360 2.719
2009-04-21 0.907 8.509

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Zenith Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Zenith Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zenith Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zenith Bank has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Zenith Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Amangbo
TENURE AS CEO 4.8 years
CEO Bio

Mr. Peter Amangbo has been Chief Executive Officer and Executive Director of Zenith Bank Plc since June 1, 2014 and since 2005 respectively and serves as its Group Managing Director. Mr. Amangbo has over 16 years postgraduate experience out of which he spent 12 years in the banking industry and 4 years experience in PricewaterHouseCoopers. He has over two decades' of experience with Zenith Bank Plc which cuts across corporate finance and investment banking, business development, credit and marketing, financial control and strategic planning and operations. He served as Managing Director of Zenith Bank Plc since June 1, 2014 and its Head of Corporate & Retail Banking Group and Zonal Head in Lagos. He moved to Zenith Bank Plc in 1993. He served as a Consultant with PriceWaterhouse where he covered assignments in financial services, manufacturing and General Commerce. Mr. Amangbo serves as Non-Executive Director at Zenith Bank (UK) Ltd. He serves as a Director of Zenith Securities Limited. He has attended several offshore courses including the Advanced Management Programme at INSEAD, France. He is a fellow of the Institute of Chartered Accountants of Nigeria. Mr. Amangbo graduated with a B.Eng in Electrical/Electronics from University of Benin in 1988 and holds an M.B.A from Warwick Business School in 1995.

CEO Compensation
  • Insufficient data for Peter to compare compensation growth.
  • Insufficient data for Peter to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Zenith Bank management team in years:

2.3
Average Tenure
  • The tenure for the Zenith Bank management team is about average.
Management Team

Peter Amangbo

TITLE
Group MD
TENURE
4.8 yrs

Mukhtar Adam

TITLE
Chief Financial Officer
TENURE
0.9 yrs

Francis Chukwunyem

TITLE
Chief Information Officer

Michael Anyimah

TITLE
Head of Investor Relations

Michael Otu

TITLE
Company Secretary & Legal Adviser
TENURE
17.2 yrs

Oladoyin Olugbuyi

TITLE
Chief Compliance Officer
TENURE
0.3 yrs

Temitope Fasoranti

TITLE
Executive Director

Ebenezer Onyeagwu

TITLE
Deputy MD & Executive Director

Dennis Olisa

TITLE
Executive Director
TENURE
2.3 yrs

Remy Umeoji

TITLE
Deputy MD & Executive Director
Board of Directors Tenure

Average tenure of the Zenith Bank board of directors in years:

5
Average Tenure
  • The tenure for the Zenith Bank board of directors is about average.
Board of Directors

Jim Ovia

TITLE
Chairman of the Board
AGE
64
TENURE
5 yrs

Peter Amangbo

TITLE
Group MD
TENURE
14.3 yrs

Temitope Fasoranti

TITLE
Executive Director
TENURE
1.3 yrs

Ebenezer Onyeagwu

TITLE
Deputy MD & Executive Director
TENURE
6 yrs

Dennis Olisa

TITLE
Executive Director
TENURE
1.3 yrs

Remy Umeoji

TITLE
Deputy MD & Executive Director

Umar Ahmed

TITLE
Executive Director
TENURE
2.5 yrs

Jeffery Efeyini

TITLE
Non-Executive Director
TENURE
8.8 yrs

Chukuka Enwemeka

TITLE
Non-Executive Director
TENURE
8.8 yrs

Oyewusi Ibidapo-Obe

TITLE
Independent Non-Executive Director
AGE
69
TENURE
3.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Zenith Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zenith Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Zenith Bank Plc, together with its subsidiaries, provides banking and other financial products and services to corporate and individual customers in Nigeria, rest of Africa, and internationally. Its primary products and services include corporate, investment, commercial, consumer, personal, and private banking products and services; and trade and foreign exchange, treasury, cash management, and other non-banking financial services. The company accepts current, savings, salary, and domiciliary accounts; fixed and call deposits, certificate of deposits, and short term investment funds; sole proprietorship/enterprise and partnership accounts, and trust funds, as well as clubs, societies, and associations accounts; and limited liability company, non-governmental organization, embassies and high commission, and church accounts. It also offers term loans and leasing services; overdrafts, receivable/invoice discounting, and LPO finance services; import and export finance facilities; and bonds and guarantees. In addition, the company provides personal funds management and investment, advisory, home remittance, and trust formation; funds transfer services; import letters of credit, import bills for collection, non-valid for forex/advance payment, export transactional, invisible remittance, and electronic services; and collection, payment, and reporting solutions. Further, it offers electronic banking services; credit, debit, prepaid, multi-purpose, branded and loyalty, and corporate cards; and general and life insurance products and services. The company also serves financial institutions, investment funds, and governments. The company was formerly known as Zenith International Bank Limited and changed its name to Zenith Bank Plc in May 2004. Zenith Bank Plc was founded in 1990 and is headquartered in Lagos, Nigeria.

Details
Name: Zenith Bank Plc
ZENB
Exchange: LSE
Founded: 1990
NGN1,822,791,522
31,396,493,786
Website: http://www.zenithbank.com
Address: Zenith Bank Plc
Plot 84,
Ajose Adeogun Street,
Lagos,
Nigeria
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NGSE ZENITHBANK Ordinary Shares Nigerian Stock Exchange NG NGN 01. Nov 2004
LSE ZENB SPON GDR REG S London Stock Exchange GB USD 21. Mar 2013
Number of employees
Current staff
Staff numbers
7,594
Zenith Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 21:33
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/04/17
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.