GTCO vs. Zenith Bank: A Financial Comparison for Investors!
Here is what you need to know about this week's Global news review:
Zenith Bank Plc has announced its audited financial results for the year ended December 31, 2024, delivering significant growth across key performance indicators.
Our thoughts
Both Zenith Bank and GTCO released their financial reports this week so let's analyse them:
1. Total Assets
GTCO: N14.80 trillion
Zenith: N29.96 trillion
What does this mean?
Zenith Bank has double the assets of GTCO, meaning it has more resources to generate income through loans, investments, and other financial activities.
This suggests greater financial muscle and the ability to withstand economic shocks better.
2. Total Liabilities
GTCO: N12.08 trillion
Zenith: N25.93 trillion
What it means:
Liabilities include customer deposits and borrowings. Since Zenith has higher assets, it is natural for it to have higher liabilities. However, a key question for investors is how well these liabilities are managed.
3. Shareholders’ Fund (Equity)
GTCO: N2.71 trillion
Zenith: N4.03 trillion
What it means:
This represents the bank’s net worth (assets minus liabilities). A higher shareholders’ fund means greater financial stability and the ability to absorb losses if necessary.
Zenith’s higher figure suggests it is a more resilient institution in the long term.
GTCO: N1.01 trillion
Zenith: N1.03 trillion
What it means:
Both banks reported strong profitability, with Zenith having a slight edge. Despite Zenith’s larger size, GTCO was still able to generate almost the same level of profit, which speaks to its efficiency.
5. Earnings Per Share (EPS)
GTCO: N35.44
Zenith: N32.87
What it means:
EPS tells investors how much profit each share of the company earns. Higher EPS is better for shareholders because it means more profit per share.
GTCO’s higher EPS (N35.44 vs. N32.87) suggests that it delivers more value to each shareholder relative to its stock price.
Which Stock is Better?
Strengths of Zenith Bank:
Bigger balance sheet – More assets and stronger capital base.
Slightly higher profit – Generates more absolute profit
More resilient financial structure – Higher equity to cushion risks.
Strengths of GTCO:
More efficient – Nearly the same profit despite smaller size.
Higher EPS – Better returns per share for investors.
Lower liabilities relative to assets – More conservative debt management.
Final Verdict:
If you're looking for a strong, well-capitalized bank with a large market presence, Zenith Bank is the better option.
But if you prefer a more efficient and shareholder-friendly stock with better earnings per share, GTCO might be the better pick.
For long-term stability, Zenith is stronger. For maximizing shareholder returns, GTCO looks more attractive. Both are good assets. Stocks! Stocks! Stocks!
Global News: Trump announces 25% tariffs on car imports to US!
President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US.
Trump said the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Taxes on parts are set to start in May or later.
Our thoughts
President Donald Trump’s new tariffs on foreign-made cars are shaking up the global auto industry.
The U.S. imports about 8 million cars each year, estimated to be worth a whooping $240 billion in 2024, from top suppliers like Mexico, South Korea, Japan, Canada, and Germany.
With these tariffs, Trump wants to push automakers to build more cars in the U.S., but the move could also drive up costs for businesses and consumers while disrupting global supply chains.
Despite the uncertainty, some companies are adjusting to the new reality. South Korea’s Hyundai Motor Group is betting big on the U.S. with a $21 billion investment—a clear sign that businesses are shifting strategies to keep up with changing trade policies.
While tariffs can help protect American industries, they often come at a price—higher car prices for consumers and potential trade conflicts with other countries.
The big question now is how other automakers and countries will respond and what it means for the future of the car industry.
African News: Kenya Airways records first profit in 12 years, posts Sh5.4 billion net gain
Kenya Airways has recorded a profit for the first time in 12 years, posting a net profit of Sh5.4 billion for 2024.
Our thoughts
Kenya Airways has recorded a profit for the first time in 12 years, posting a net profit of Sh5.4 billion for 2024.
The national carrier’s turnaround comes after a Sh22.6 billion loss in 2023, largely driven by foreign exchange gains.
Key Takeaways from Kenya Airways' Performance
First profit in over a decade – a major milestone.
Foreign exchange gains played a crucial role
Improved operational efficiency as Higher revenues and cost control contributed to better results.
Future growth tied to infrastructure – Expansion of Nairobi’s international airport and a larger fleet could further boost performance.
KQ’s results are somewhat in line with general trends. Many national airlines have struggled financially due to poor management, over-expansion, and debt burdens and have received financial lifelines from their governments. ·
Generally, airlines that rely on foreign currency for fuel, aircraft leasing, and debt servicing are vulnerable to currency fluctuations and KQ’s turnaround highlights how a stronger currency can impact profitability, but reliance on forex gains is unsustainable in the long run.
KQ needs to increase passenger volumes, cut operational inefficiencies, and reduce reliance on state bailouts. Plenty of work.
Overall, Kenya Airways' return to profitability is a positive step, but long-term success will depend on structural improvements rather than external factors like currency movements.
But today, let’s celebrate the wins!
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