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Zenith Bank reports N63bn profit, proposes N0.25 interim dividend

Despite that the bation’s economy and the banking industry are struggling with fiscal and monetary challenges that saw inflation and foreign exchange at their worst in many years, Zenith Bank Plc has announced a profit before tax of N63 billion in audited results for the half year ended June 30, 2016.

Zenith Bank in its results to the Nigerian Stock Exchange (NSE) today, maintained its half-year interim dividend tradition by proposing N0.25 in the period under review.

The Group’s gross earnings stood at N214.8 billion from N229.08 billion in prior half year while operating expenses dropped by 11.3 per cent to N82.9 billion as against N93.5 billion in half year ended June 30, 2015.

The balance sheet of the Zenith Bank Group continued to improve as gross loans and advances increased by 15.1 per cent to N2.3 trillion from N2 trillion as at December 31, 2015.

Also, customer deposits increased by five per cent to N2.7 trillion from N2.6 trillion while total assets  increased by 8.7 per cent to N4.4 trillion by June 2016 as against N4trillion recorded by December 2015.

Return on average assets (ROAA) closed the half year at 2.10 per cent while return on average equity (ROAE) stood at 14.80 per cent.

It must be noted that Zenith Bank’s 2.34 per cent ratio of non-Performing Loan (NPL) in half year 2016 is far below the Central Bank of Nigeria (CBN) threshold of five per cent and represents one of the best in an industry challenged with NPLs.

The management of Zenith Bank Group in a statement said, “The performance for the period ended June 30, 2016 further confirms Zenith’s industry leadership and consistency in providing superior financial returns.

“Despite the challenging operating environment, the Group recorded gross earnings of N214.8 billion which represents a marginal drop of 6.2per cent over the same period last year. The Group also reported an increase of 2.9per cent (Y-o-Y) in interest income, and a decrease in its interest expense by 14.5per cent (Y-o-Y).

“The drop in Interest expense was as a result of the Group’s deliberate policy on focusing on low cost deposits. Profit before Tax (PBT) dropped by only N9billion (Y-oY) despite a drop in top line revenue by N14billion for the same period. This is attributable to the Group’s operational efficiency and cost optimization efforts.

“The Group continues to maintain high quality risk assets and closed with Gross Loans and Advances of N2.3trillion as at June 30, 2016. This represents a 15.1per cent increase over the N2.0trillion recorded at the end of the 2015 financial year.

“This increase is mainly due to the impact of the devaluation of the Naira on our foreign currency loans. Also, it partly accounts for the growth of NPLs to 2.34 per cent as at 30 June 2016, with coverage ratio was 110per cent.

“In pursuant to sustaining a strong and high quality statement of financial position, The Group continues to maintain robust liquidity ratio of 55per cent which is firmly above the 30per cent minimum statutory requirement for the period ended 30 June 2016. The group’s Capital Adequacy Ratio (CAR) stood at 19per cent which is above the 15per cent regulatory limit.”

In spite of the economy crisis and competitive operating environment, Zenith Bank outlook remains positive barring any unforeseen circumstances.

The bank said it is strategically positioned to explore opportunities to grow its customer base and risk assets in the second half of the year.

The lender explained that more emphasis would be placed on agriculture, real sector and emerging opportunities while providing support towards the expansion of local production and manufacturing capacity.

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  • I love your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz reply as I’m looking to design my own blog and would like to know where u got this from. appreciate it

  • I’m curious to find out what blog system you’re utilizing? I’m having some minor security problems with my latest site and I’d like to find something more safeguarded. Do you have any suggestions?

  • Hi there would you mind sharing which blog platform you’re working with? I’m looking to start my own blog in the near future but I’m having a difficult time selecting between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your layout seems different then most blogs and I’m looking for something completely unique. P.S Sorry for being off-topic but I had to ask!

  • Good day! Do you know if they make any plugins to help with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good results. If you know of any please share. Cheers!

  • Hola! I’ve been reading your blog for a long time now and finally got the courage to go ahead and give you a shout out from Atascocita Tx! Just wanted to mention keep up the good job!

  • With havin so much written content do you ever run into any problems of plagorism or copyright infringement? My site has a lot of exclusive content I’ve either written myself or outsourced but it seems a lot of it is popping it up all over the internet without my agreement. Do you know any ways to help stop content from being stolen? I’d truly appreciate it.

  • Greetings! I know this is somewhat off topic but I was wondering if you knew where I could locate a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having problems finding one? Thanks a lot!