Zenith Bank grows profit by 5 percent to N176 billion
The bank's gross earnings increased by 4 percent from N474,607 billion in Q3 2018 to N491,268 billion in Q3 2019.
Zenith Bank Plc, one of Nigeria’s largest banks, has released its unaudited results for the period ended 30th September, 2019, declaring a 5 percent rise in profit before tax from N167 billion in the third quarter of 2018 to N176 billion in Q3 2019. According to the latest financial statements presented to the Nigerian Stock Exchange (NSE), gross earnings increased by 4 percent from N474.6 billion reported in Q3 2018 to N491.3 billion in a similar quarter in 2019.
In a press statement released by Zenith Bank, the bank said its latest financial results demonstrate its market dominance and leadership. Despite a challenging macro-economic environment, Zenith Bank said it recorded a significant growth in non-interest income, which expanded by 22 percent from N128.7 billion in Q3 2018 to N156.8 billion in the current period.
“Our platforms and channels have been the enablers of this growth, with fees from electronic products doubling to N35.3 billion from N17.6 billion in Q3 2018,” Zenith Bank said. “Our cost optimization strategies and aggressive retail banking drive are yielding the desired effects as cost-to-income ratio declined from 51.2% in Q3 2018 to 50.1% in Q3 2019 with Earnings Per Share (EPS) growing by 5% from N4.58 in Q3 2018 to N4.80 in Q3 2019.”
The bank said its customers’ deposits grew by 7 percent to N3.95 trillion from N3.69 trillion recorded as at December 2018. According to Zenith Bank, this reflects the bank’s acquisition of an increasing share of the industry’s deposits and customers’ confidence in the Zenith brand.
“These deposit acquisitions have directly contributed to our cost of funds improving from 3.3% in Q3 2018 to 2.95% as at Q3 2019,” the bank said, adding that the momentum of its retail and corporate banking franchises continued.
A leading Nigerian commercial bank, Zenith Bank said it has continued to deploy capital to create viable risk assets. In the review period, gross loans and advances across both the retail and corporate segments grew by 9 percent to N2.2 trillion as at Q3 2019. The bank said its focus remains the search for bankable lending opportunities to ensure the attainment of the minimum regulatory loan-to-deposit ratio (LDR) of 65 percent by December 31, 2019, without compromising its prudence.
Zenith Bank’s non-performing loans (NPL) ratio declined from 4.98 percent in December 2018 to 4.95 percent in the current period. The bank said it achieved this through its robust risk management framework. Its liquidity and capital adequacy ratios were 63.8 percent and 23.8 percent, respectively, both above regulatory thresholds.
On the back of recording 5 percent growth in profit after tax to N150,723 billion in Q3 2019, the bank said it will sustain its competitiveness and market share in the corporate segment in the final quarter of 2019. Zenith Bank will also build upon its digital foundations to reinforce its retail banking initiatives.
The bank said its commitment to world-class service standards has led to several product innovations and recognitions. Zenith Bank was recently named the Bank of the Year and the Best Bank in Retail Banking at the 2019 BusinessDay Banks’ and Other Financial Institutions Awards (BAFI Awards).
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