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Investors Stake N2.6bn in GTBank, Zenith Bank

By on March 28, 2011

Encouraged by impressive results declared by Guaranty Trust Bank Plc and Zenith
Bank Plc investors swooped on the shares of the two banks, investing N2.605
billion in the process last week at the stock market.
GTBank Plc declared a final cash dividend of 75 kobo and a bonus of one new
share for every four shares already held for the year-ended December 31, 2010.
Similarly, Zenith Bank Plc declared a cash dividend of 85 kobo per
share for the
2010 financial year.
And in a bid to benefit from the returns announced by the two leading financial
institutions, investors increased their patronage at the stock market which led
to high demand for the shares.
Investors invested N2.605 billion in the 146.886 million shares of the banks,
which  represented 26 per cent of the total investment of N9.9 billion made on
equities last week at stock market.
However, GTBank Plc accounted for the highest of N1.654 billion invested in
84.077 million, while Zenith Bank Plc attracted N950.867 million staked on
62.809 million shares.
An analysis of the GTBank’s results showed that the bank recorded
gross earnings
of N153.908 billion in 2010  as against N162.550 billion in 2009. Profit after
tax rose from  N23.687 billion to N38.347 billion. Its net asset value (NAV)
stood at N210.826 billion compared with N192.245 billion in  2009.

The 75 kobo final dividend brings  total dividend for the year to N1, having
paid an interim dividend of 25 kobo last August. Investors who want to benefit
from the final dividend and bonus have up to April 7 2010 to buy into the bank,
hence the high demand.
On the other hand, Zenith Bank posted gross earnings of N192.488 billion  in
2010, as against N277.300 billion in  2009. Profit after tax stood at N37.414
billion compared with N20.603 billion in 2009. The NAV N363.561
billion compared
with N337.793 billion in December 2009.

Hence , the directors recommended a dividend of 85 kobo per share. According to
the bank, the date of closure of registrar of members is April 6, 2011 while
payment date is April 15, 2011.

Both banks have maintained impressive growth pattern and performance over the
years, which have earned them excellent ratings from local and international

Source : Thisday