Zenith Bank shows resilience as profit before tax rises by 1% in Q3 2020



 

Zenith Bank Plc has announced its unaudited results for the third quarter ended 30 September 2020 with with a Profit Before Tax (PBT) N177 billion, representing a 1% growth over the ₦176 billion posted in the same period in the previous . This demonstrates the Group’s resilience against the backdrop a challenging macro-economic environment about by the Coronavirus (COVID-19) pandemic.

 

 

 

 

According to the unaudited account which was presented to the Nigerian Stock Exchange (NSE), gross earnings were up 4% -- (y-o-y) to ₦509 billion, driven by non-interest income which increased to ₦173 billion from ₦157 billion recorded at the end Q3 2019, reflecting the Group’s increasingly diversified business model. Profit After Tax (PAT) grew by 6% to N159 billion from N150 billion in the corresponding period last . The growth was driven by non-interest income which grew by 11% to ₦173 billion from ₦157 billion recorded at the end of Q3 2019, reflecting the Group’s increasingly diversified business model.

 

 

 

 

The result also demonstrates the Group’s ability to deliver optimal pricing for its interest-bearing assets and liabilities in a declining yield environment, as net interest income grew by 5% -- (y-o-y) to ₦225 billion despite the drop in total interest income from ₦322 billion to ₦319 billion. Interest expense and cost of funds were down 13% and 27% to close at ₦94 billion and 2.2% respectively, reflecting the Group’s robust treasury and liquidity management.

 

 

 

 

Total deposits closed at ₦5.2 trillion at the end of Q3 2020 up from ₦4.3 trillion in December 2019, by low-cost deposits. Retail deposits grew impressively by 58% to ₦1.7 trillion at the end of Q3 2020 up from ₦1.1 trillion as at December 2019, underpinned by the expansion and improvement of the Group’s digital platforms.

 

 

 

 

In terms of asset quality, the Group’s Non-Performing Loan (NPL) ratio improved to 4.80% (FYE 2019: 4.95%), despite growing loans and advances by 17 % from ₦2.5 trillion as at December 2019 to ₦2.9 trillion at the end of Q3 2020, affirming the Group’s prudent credit risk management. The liquidity and capital adequacy ratios (CAR), at 67.4% (Bank: 52.5%) and 21.5% respectively at the end of Q3 2020, remain above regulatory thresholds of 30.0% and 15.0%.

 

 

 

 

Zenith Bank Plc has continued to demonstrate resilience and industry leadership. In recognition of its track of excellent , Zenith Bank was voted as the Best Commercial Bank in 2019 by the World Finance and the Best Digital Bank in 2019 by Agusto and Co. The Bank was also recognised as Bank of the Year and Best in Retail at the 2019 BusinessDay Banks and Other Financial Institutions (BOFI) . recently, the Bank emerged as the Most Valuable Brand in , for the third consecutive year, in the Banker Magazine “Top 500 Brands 2020”, Number One Bank in Nigeria by Tier-1 Capital in the “2020 Top 1000 World Banks” Ranking published by The Banker Magazine, Best Bank in Nigeria 2020 in the Global Finance World’s Best Banks 2020, and Bank of the Decade (People’s Choice) at the ThisDay 2020.