Zenith Bank Jolted By Impressive Half Year Report

..As Profit Before Tax (PBT) Rose To N111.7Bn

Yemisi Izuora 


Zenith Bank Plc, is impressed by its audited results for the half year ended 30 June 2019, which showed positive growth across key financial metrics.

This significant growth has further reaffirmed the bank’s position as one of the leading financial institutions in Africa.  

As a testament to its commitment to its shareholders, the bank also announced a proposed interim dividend pay-out of 30 kobo per share.

The result showed gross earnings growing by 3 per cent from ₦322.2 billion to ₦331.6 billion driven by a significant growth of 24 per cent (YoY) in non-interest income from ₦88.6 billion in H1 2018 to ₦109.7 billion in H1 2019. 

In particular, fees from electronic products increased by ₦17bn 168 per cent from ₦10bn in H1 2018 to ₦27 in H1 2019, demonstrating significant progress in our retail banking initiatives. 

This top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to ₦111.7 billion reflecting a 4 per cent growth over ₦107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by 9 per cent to ₦2.83 in H1 2019 from ₦2.60 compared to the prior period.

Between December 2018 and June 2019, the Group’s total deposit increased by 3 per cent with retail deposits growing by ₦267 billion 31 per cent from ₦861 billion to close at ₦1.1 trillion. 

Despite the growth in its deposit base, the bank optimized interest expense leading to a 4 per cent reduction from ₦74.7 billion to ₦72.1 billion due to the Group’s improved funding mix and its  profound treasury management skills. 

Also Net Interest Margins (NIMs) witnessed a compression from 10 per cent in the same period last year to 8.6 per cent in H1 2019, as a result of the declining yield environment but cost of funds improved from 3.4 per cent to 3.0 per cent.

The banks robust risk management ensured that absolute Gross Non-Performing Loans (NPLs) remained flat. 

However, the marginal movement in NPL ratio was as a result of the 3 per cent reduction in our loan book from ₦2.02 trillion as at December 2018 to ₦1.95 trillion at the end of the period. 

The bank is also creatively deploying new retail loan products to ensure it captures a reasonable share of the retail loan market, while remaining committed to maintaining strong balance sheet with liquidity ratio at 74.6 per cent and Capital Adequacy Ratio (CAR) at 25 per cent ensuring it remained above regulatory thresholds.  

 Going into the second half of the year, the bank intends to continue to consolidate its leadership in the corporate space while its retail banking drive will continue unabated. It expects to see an improvement in economic activities even as it maintains its promise of delivering a unique service experience to customers.  

 Consistent with this superlative performance and in recognition of its track record of excellent performance, the bank was recently ranked as the Most Valuable Banking Brand in Nigeria in 2018 by The Banker Magazine. 

Similarly, Zenith Bank was recognized as the Best Corporate Governance Bank in Nigeria by The World Finance for the sixth time just as Ethical Boardroom, a Europe based Boardroom watchdog reaffirmed this recognition by naming the bank as the Best Bank in Corporate Governance in 2018.

Recognition has also come the way of the bank as it was recently named as the Best Institution in Sustainability Reporting in Africa 2018 (SERAS Awards) and the Bank of the Year 2018 (BusinessDay).

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