Impressive Performance Riding on Core & Non-Core Income

Zenith Bank Plc published its H1:2024 interim financial results, recording a 120.03% YoY expansion in Gross Earnings to NGN2.05trn. This is on the back of increase in both interest income (+176.69% YoY to NGN1.15trn) and non-interest income (+72.50% YoY to NGN951.94bn) in the period. Meanwhile, Operating Expenses surged 115.30% YoY to NGN472.08bn owing to rising personnel costs and fuel & maintenance. Profit Before Tax (PBT) and Profit After Tax (PAT) increased by 107.51% and 98.13% to NGN727.03bn and NGN578bn respectively.

We expect Zenith bank to post decent top-line and bottom-line performance in 2024FY riding on increased interest income and Trading income in the period.  We therefore maintain our 2024FY target price to NGN46.60. Compared to the current closing price of NGN39 as of 2nd September 2024, this represents an Overweight rating on the stock.

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