For both Zenith Bank and Gtbank, 2014 was a remarkable year in terms of all round performance. The two banks have since released the results of their robust performance ahead of others to the delight of their stakeholders. For instance, Zenith Bank recorded N120 billion, profit before tax, PBT implying an 8.3 per cent year on year growth, while Gtbank posted PBT of N116.385 billion. Zenith bank grew its gross earnings by 19.5 per cent to N372 billion from N311 billion in 2013. Their NII rose by 3.4 per cent year on year to N313.4 billion. Its profit after tax was recorded to have risen by 7 per cent to N103.3 billion.
On the other hand, Gtbank’s statement of comprehensive income for the period ended December 31, 2014 showed gross earnings growth of 15 per cent to N278.520 billion from N242. 665 billion in 2013. The bank’s net interest income, NII, rose by 4 per cent to N142. 392 billion as against N136.939 billion in 2013. Also its PBT rose by 9 per cent to N116.385 billion as against N107.091 billion in 2014. Profit after tax also increased by 10 per cent to N98.694 billion from N90.023 billion in 2013.
Gtbank’s profit before tax, according to analysts, is said to come ahead of management’s full year guidance of N110 billion ahead of consensus full year PBT forecast of N109 billion. Analysts said the positive surprise in the results was driven by non- interest income and also FX trading. “More importantly, these results do not yet reflect the fallout from the worst of the marked decline in oil prices. We believe that GTbank will fare better than most banks and should be viewed as a core holding for investors through the challenging times ahead,” FBN Capital limited analysts said.
The analysts further said that for Zenith Bank, the results were ahead of expectations as Zenith delivered a return on average equity, ROAE, of 19 per cent in 2014. “We should expect consensus estimates for 2015 to move up slightly. The caveat is that concerns about the impact of the fallout from the decline in oil prices are likely to linger a bit,” said FBN Capital analysts.