Zenith Bank Plc, (Bloomberg: ZENITHBA NL) (“Zenith” or the “Bank”), the Nigerian bank headquartered in Lagos, announces its unaudited results for the quarter ended 31 March 2019.
In millions of Naira
Interest and similar income
Net interest income
Profit before tax
Profit after tax
Earnings Per share (N)
Gross loans and advances
Return on average equity (ROAE)
Return on average assets (ROAA)
Net interest margin (NIM)
Cost of funds
Cost of risk
Loan to deposit ratio
Capital adequacy ratio (CAR)
Non performing loan
ZENITH BANK PLC SUSTAINS MARKET DOMINANCE WITH IMPROVED PROFITABILITY
In the first quarter ended 31 March 2019, Zenith Bank Group recorded improved numbers across key metrics, driven by a solid performance in all business segments. This resulted in a Profit before Tax (PBT) of ₦57 billion, representing a 6% growth over the ₦54 billion achieved in the corresponding period in 2018. The Group’s on-going commitment to cost optimisation on the income statement and statement of financial position ensured earnings per share increased by 7% to ₦1.60 compared to Q1 2018.
The growth in net interest income and operating income by 23% and 1% respectively mitigated the decline in gross earnings. The effective management of cost-to-income ratio, cost of funds and cost of risk offset top-line declines to deliver an enhanced operating income in the period.
Our risk and asset quality continues to improve as cost of risk dropped significantly by 52% from 0.9% in the prior year to 0.4% for the period. This was achieved as impairment charges declined by 54% (₦2.5 billion year on year reduction). Our cost of funds also improved, declining by 25% from 4% in Q1 2018 to 3% at quarter-end. This was supported by a 22% decrease in interest expense of ₦10 billion over the same period, affirming the Group’s robust treasury and liquidity management. Our prudent cost management led to a 5% decline in our cost-to-income ratio by 5% from 53.3% in 2018 to 50.9% in the period with an absolute reduction in operating expenses by ₦2.3 billion year-on-year.
The Group’s retail franchise continues to increase as retail deposits grew by N80bn between December 2018 and March 2019 representing a 9% growth notwithstanding the fact that total customer deposits dropped marginally by 3%. The drop in customer deposits was as a result of rebalancing of the deposit mix as expensive purchased deposits were forgone in favour of cheaper and stickier retail deposits.
The volume and value of transactions across our electronic and digital platforms continue to grow as new customers are being acquired. Our balance sheet continues to strengthen as liquidity ratio is at 66.7%, loan to deposit ratio closed at 43%, and capital adequacy ratio ended the period at 25% respectively and remain above the relevant regulatory thresholds as at 31 March 2019.
Going into the rest of the year and with improving economic fundamentals, we are confident of delivering value to all our stakeholders on our commitments even as we create more opportunities for businesses by supporting them through selective risk asset creation. We shall continue our investments in the retail segment of the market as we consolidate our leadership position in the corporate segment while maintaining a strong balance sheet.
- ENDS –
Adron Homes Unveils SuperStar Musician Yinka Ayefele as Brand Ambassador
First Bank Splashes Scholarships Worth N2.7m On 18 Customers
Multiple birth is difficult in rearing, seek for support. .., IWS president
IGANDO HOUSING SCHEME, SANGOTEDO, OTHERS READY IN SIX MONTHS- AMBODE
LEGALITY OF MARIJUANA IN NIGERIA: A LEGAL OPINION -Kayode Ajulo, PhD
Cover Of The Week
- Committee Against Torture closes Sixty-Sixth Session May 17, 2019
- UNMISS gives a boost to judicial processes in the Jonglei area (Gideon Sackitey) May 17, 2019
- South Sudan Situation Report, 17 May 2019 May 17, 2019
- Global platform on disaster risk reduction: we need a drastic change of course May 17, 2019
- The United Nations Office for West Africa and the Sahel (UNOWAS) and the Economic Community of West African States (ECOWAS) reinforce cooperation to empower women peacebuilders in the region May 17, 2019
- UAE helps release of four civilians held captive in Libya May 17, 2019
- H.H. Sheikh Abdullah bin Zayed receives South African counterpart May 17, 2019
- U.S. State Department hosts “Ethiopia Partnership Forum” May 17, 2019
- Mitigating displacement due to Climate Change, Disasters a Risk Reduction Priority, International Organization for Migration (IOM) says May 17, 2019
- Minister of State Müntefering on the return of the Stone Cross of Cape Cross to Namibia May 17, 2019
Uncategorized3 months ago
“We are not postponing elections” – INEC
celebrity radar - gossips3 months ago
2019 Election: The Nigerian election may likely be postponed because of many challenges. In whatever way, God is in Control “- T B Joshua Reveals
celebrity radar - gossips6 months ago
BREAKING! 2018 YORUBA MOVIE GIST AWARDS NOMINEES LIST FINALLY OUT
Crime1 month ago
Abduction:2 suspects nabbed Over Kidnap of Lagos state fire service Director, Six others