Zenith Bank ahead with N491.2b gross earnings in Q3

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Zenith Bank PLC has announced its unaudited results for the third quarter ended 30 September, 2019, with numbers that clearly demonstrates its market dominance and leadership.

From the unaudited account which was presented to the Nigerian Stock Exchange (NSE), gross earnings increased by four per cent  from N474,607 billion recorded in third party 2018 to N491,268 billion in third quarter of 2019. Profit Before Tax (PBT) grew by five per cent from N167,307 billion in third quarter 2018 to a record N176,183 billion in third quarter of 2019. Also, profit after tax rose by 5% from N144,179 billion in third quarter 2018 to N150,723 billion in third quarter 2019.

Despite a challenging macro-economic backdrop, the group recorded a significant growth in Non-Interest Income, expanding by 22% from N128.7 billion in third quarter 2018 to N156.8 billion for 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 third quarter of last year.

“Our cost optimization strategies and aggressive retail banking drive are yielding the desired effects as cost-to-income ratio declined from 51.2% in third quarter of 2018 to 50.1% in third quarter of 2019 with Earnings Per Share (EPS) growing by 5% from N4.58 in third quarter of 2018 to N4.80 in third quarter of  2019”.

“Our retail and corporate banking franchises continued its momentum with customers’ deposits growing by 7% to N3.95 trillion from N3.69 trillion recorded as at December 2018, a reflection of 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 third quarter 2018 to 2.95% as at third quarter 2019″.

In a statement, the bank said it had continued to deploy capital to creating viable risk assets with gross loans and advances growing by nine per cent from N2.02 trillion as at December 2018 to N2.2 trillion as at third quarter of 2019 across both the retail and corporate segments. Our focus remains the search for bankable lending opportunities to ensure the attainment of the minimum regulatory loan-to-deposit ratio (LDR) of 65% by December 31, 2019 without compromising our prudence”.

Continuing, it said: “Our robust risk management framework has ensured that non-performing loans (NPL) ratio declined from 4.98% in December 2018 to 4.95% in the current period. Our commitment to maintaining a shock-proof balance sheet remains with liquidity and capital adequacy ratios at 63.8 per cent and 23.8% respectively, both above regulatory thresholds”.

“In this final quarter of the year, we will sustain our competitiveness and share of market in the corporate segment and build upon our digital foundations to reinforce our retail banking initiatives. As a testament to this superlative performance and in recognition of its track record of excellent performance, the bank was recently named as the Bank of the Year and the Best Bank in Retail Banking at the 2019 Business Day Banks’ and Other Financial Institutions Awards (BAFI Awards)”.

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