Zenith Bank Plc (ZENITHBA), Nigeria’s biggest lender by market value, fell for the first time in three days after weaker-than-expected full-year results, FBN Capital Ltd. said.
Net income for the year through December rose 18 percent to 44.2 billion naira ($281 million) as revenue jumped 27 percent to 244 billion naira, according to results released today by the Lagos-based lender. Zenith proposed a dividend of 95 kobo per share.
The stock declined 2.5 percent to 13.56 naira, its lowest price since March 1, by the 2:30 p.m. close in Lagos.
“The source of the disappointment in the results was the provisions line,” FBN Capital said today in an e-mailed note. Zenith’s provisions for bad loans in the year amounted to 24.3 billion naira, three-quarters of which fell in the fourth quarter and probably were loans to a fuel retailer, according to FBN Capital.
The dividend, up 10 kobo from the 85 kobo it paid last year, will be paid on April 5, Zenith said. “The implied yield of 6.8 percents will be appreciated by the market, we believe,” FBN Capital said.
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