BY BUSAYO SAMUEL
The Group Managing Director and Chief Executive Officer of Zenith Bank Plc, Ebenezer Onyeagwu, has increased his shareholding in the bank by acquiring about 3.3 million of the bank’s shares in six deals in one day.
The bank chief, according to a notification of share dealings by insider in the bank from the NGX, spent over N80 million to buy the shares at an average market price of N24.38 per unit.
Breakdown of the deals showed that he bought 323,533 units of ordinary shares of the bank at N24.25 per share and 356,800 units at N24.30 per unit.
In other deals, 59,218 units of shares at N24.35 per unit; 1,059,727 units at N24.40 per share; 500,000 units at N24.45 and 997,960 units at N24.50 per unit were traded.
In all, 3,297,238 units at average price of N24.38 per unit were achieved on November 23, 2021.
The acquisition is in line with the projection of stock analysts that the market will remain bullish in fourth quarter of 2021 financial year.
Analysts at Cordros Research had said investors will position in dividend-paying stocks ahead of 2021 full year dividend declarations which will happen in first quarter of 2022.
The analysts also said there is prospect of increased activities from Foreign Portfolio Investor supported by improved liquidity conditions at the IEW.
Meanwhile, the financial performance of Zenith Bank has been uptick as the Group’s unaudited nine months financial results presented to the Nigerian Exchange showed that gross earnings increased by 2 per cent from N509 billion to N519 billion largely due to growth in current account maintenance fees as well as fees from electronic products during the period.
Despite continuing economic uncertainties, the Group grew its net earnings through a reduction in the cost of funds while keeping the cost of risk flat—this strengthened Earnings per Share by 1 percent to N5.11.
The Group achieved a 9 percent growth in interest income from loans and advances on the back of an increase in gross loans of 9 percent year to date and enhanced efficiency, resulting in a 21 percent drop in interest expense to N74 billion from N94 billion. This culminated in growth in net interest income of 4 percent, from N225 billion recorded at the end of Q3 2020 to N235 billion in the current period.
