Zenith bank: Incremental value is very good
Zenith bank has improved on its variable indices as compared to the previous half year I.e June 2016. There is a significant progress in the stand of the bank based on the financial statement if NOT window dressed as is the case with the banking industry.
1. Liquidity Ratio: The bank has improved on its liquidity position during the last 12 months I.e June 2016 – June 2017. Liquidity ratio rise from 55.2% to 61.1%. The bank is comfortable as it is liquid enough to meet customers’ demands.
2. Net profit: Also there was a leap of about 112% increase in the Net profit of the half year as compared to the yesteryear half year result. The Net profit ( PAT ) rise from N35,467 to N75,317.
The bank performed creditably in this regard. Their bottom line is solid with this 112% increase in profit.
3. Loan to customers: from the half year financial statement, the bank loan and advances to customers decreased by 2.6% showing that the bank was able to recoup some of loan portfolio and still performed well. The loan portfolio decreased from N2,360,809 to N 2,299,442. Though the reduction is not significant. It also shows that the bank has reduced granting of loans to customers to avoid non performing or bad debt situation.
4. Incremental value: the increment value is good.
5. Goodwill to customers: Generally from the half year outlook, the bank with 4% increase in total asset base of N4,974,367 and 2.1% increase in share holders’ funds of N719,333 for half year result has a positive goodwill value for its customers and the shareholders to boost their relationship, patronage and interest in the bank.
Lastly, the half year result of the bank shows a drastic improvement over the previous half year of June 2016. Basically, the bank have a good economic indices that investors and potential investors alike can rely on to further invest and patronize the bank.
