By Nkiruka Nnorom

Interestingly, the list of top 10 performing stocks was dominated last week by the shares of banking stocks as they begin to issue their 2014 financial statements and accounts to the investing public.

This is also coupled with dividend payment that is already recommended by the two banks that have released their results and expectation of similar performance by others being expected.

Accordingly, Zenith Bank Plc, which released an improved financial performance, last week, topped the list, followed by United Bank for Africa Plc and Union Bank of Nigeria Plc.

Others were National Salt Company, NASCON Plc, Ikeja Hotels Plc, Diamond Bank Plc, FBN Holdings Plc, Aiico Insurance Plc, Red Star Express Plc and Skye Bank Plc. Zenith Bank led with 18.98 percent or N3.34 price appreciation to close at N20.94 from N17.60 per share, propelled by reactions to its just released financials. The bank posted14.76 percent growth in its gross earnings to N403.3billion from N351.5 billion in 2013. Its profit before tax rose by 12.8 percent to N120 billion compared to N106 billion posted in the previous year, while the profit after tax rose by 8.6 percent to N99.5 billion from N91.5 billion achieved during the year ended 31 December 2014.

Consequently, the Board of Directors has recommended N1.75 as dividend for the year ended December 31, 2014. It was one of the 10 Nigerian banks that Fitch Rating affirmed their Long-term Issuer Default Ratings (IDRs), with stable outlook. Just last year, the bank issued a $500 million Eurobonds Notes from its $1 billion Global Medium Term Note programme, which was over 200 over subscribed.

The bank since March 2013 listed on the London Stock Exchange, LSE, through a non-capital Global Depository Receipt, GDR, listing for greater accessibility by international investors. Zenith Bank is rated BB-/Stable/B by S and P, being the highest rating awarded to any Nigerian bank and in line with the country’s risk rating. The Banker Magazine also adjudged the bank as “Bank of the Year (2013)” in Nigeria while World Finance named Zenith Bank as “Best Commercial Bank in Nigeria (2013)”. The bank has consistent dividend history to its credit, paying 95kobo in 2011, N1.20 in 2012 and N1.75 in 2013.

UBA followed with 17.29 percent or N0.60 gains to close at N4.07 from N3.47. The bank recently emerged winner in three categories of the maiden edition of the MasterCard Cashless Champion Awards. The bank won in three, out of six categories namely: Cashless Transactions Champion, which represents the highest increase between Q3 2014 and Q4 2014 in the number of Point of Sale (POS) transactions, Cashless Volume Champion, for having achieved the highest growth in the value (Dollar or Naira) of POS transactions between Q3 2014 and Q4 2014, and Cashless Cross-border Champion for the best improvement in international acquired volumes by enabling all its merchant locations to accept international EMV Chip and PIN payment cards.

UBN ranked third with 16.87 percent or N1.66 appreciation to close at N11.50 from N9.84 per share. By the price appreciation recorded last week, Union Bank has succeeded in joining the league of banking stocks that have crossed the two-digit price level. With this, the bank has delivered 78.2 percent 52 week return to investors.

Available unaudited financial statement of the bank for nine months ended 30th September 2014 showed that the group’s gross earnings fell to N74.8 billion from N79.9 billion recorded in the same period in 2013. Also, its interest income declined to N56.2 billion from the N60.6 billion in the third quarter of 2013.

The group’s profit before tax, however, climbed to N8.3 billion from N6.8 billion posted in the previous year. Commenting on the bank’s third quarter activities, its Group Managing Director/CEO, Mr. Emeka Emuwa, has said: “Our third quarter activities were focused on continuing and consolidating our transformation efforts to ensure we maintain strategic focus in key areas and deliver operating results according to plan.”