The Oasis Reporters
October 23, 2019
Profit After Tax rises to N150,723 billion in Q3 2019, up from N144,179 billion in Q3 2018
With the impressive Q3 results posted by the Zenith Bank PLC Group even in the face of a challenging macroeconomic backdrop which indicates a significant growth in Non-Interest Income that has expanded by 22% from N128.7 billion in Q3 2018 to N156.8 billion for the current period, Lagos based financial analysts are in agreement that Zenith Bank PLC has indeed stamped it’s strong leadership position in Nigeria’s financial firmament.
Zenith Bank Plc announced its unaudited results for the period ended 30 September, 2019, with the numbers clearly demonstrating its market dominance and leadership.
The unaudited account which was presented to the Nigerian Stock Exchange (NSE), shows gross earnings that increased by 4% percent from N474,607 billion recorded in Q3 2018 to N491,268 billion in Q3 2019. Profit Before Tax (PBT) grew by 5% from N167,307 billion in Q3 2018 to a record N176,183 billion in Q3 2019. Also, profit after tax rose by 5% from N144,179 billion in Q3 2018 to N150,723 billion in Q3 2019.
The Oasis Reporters In-house financial analysts investigated the enablers of the bank’s growth, and found out that fees from electronic products doubled to N35.3 billion from N17.6 billion in Q3 2018. Quite understandable because the bank founded by Jim Ovia, American educated Nigerian, came back home to set up Zenith Bank Plc over two decades ago, utilizing the cutting edge technologies he had understudied in the USA at a time that ledger books and analogue banking methods were what was available in the Nigeria.
In addition to that, Zenith Bank Plc invested in cost optimization strategies and aggressive retail banking drive. These seemed to have yielded 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’s 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 directly contributed to the group’s cost of funds improvement, from 3.3% in Q3 2018 to 2.95% as at Q3 2019.
Deploying capital to create viable risk assets with gross loans and advances growing by 9% from N2.02 trillion as at December 2018 to N2.2 trillion as at Q3 2019 across both the retail and corporate segments, helped significantly as well. Just as the 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 prudential compromise.
“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% 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,” a statement from the Bank headquarters in Nigeria’s business and financial capital city of Lagos said.
Zenith Bank Plc’s track record of excellent performance has been widely recognized, such that the bank was recently named as the Bank of the Year and the Best Bank in Retail Banking at the 2019 BusinessDay Banks’ and Other Financial Institutions Awards (BAFI Awards).