Zenith Bank reports 25.5% increase in profit to N47.08bn in Q1

By Afolabi Adesola

Zenith Bank Plc has announced an increase of 25.5 percent in profit in the first quarter of 2018 to N47.8 billion as against N37.5 billion reported in the first quarter 2016.

The lender’s in its unaudited results to Nigerian Stock Exchange (NSE) Thursday said, profit before tax gained 22.2 percent to N54 billion from N44.2 billion in Q1 2016 as gross earnings rose by 14.5 percent to N169.19 billion in Q1 2018 from N147.7 billion reported in Q1 2017.

The management of Zenith Bank Group in a statement, said “The first quarter of 2018 was a continuation of the strong financial performance we delivered last year as our business demonstrated growth across key metrics.

“In the period, we delivered Gross earnings of N169 billion representing a growth of 14.5 percent compared to the same period last year which was led by a 20.8per cent upswing in interest income.

“Our asset mix continues to do well, driven by interest earned on government securities and our corporate business. This growth in interest income translated into an improved Profit before Tax (PBT) growth of 22.2per cent and a Profit after Tax (PAT) increase of 25.5 percent compared to March 2017, at N54 billion and N47 billion respectively.

The Group’s Net Interest Margin ratio grew by 20.8per cent against the prior period to 9.3per cent., demonstrating the Group’s ability in delivering optimal pricing for its interest-bearing assets and liabilities even in a declining yield environment.

“Furthermore, the Group’s Capital Adequacy Ratio (CAR) and Loan-to-Deposit ratio stood at 22.3per cent and 50.7per cent respectively, providing the Group with ample opportunities for growth and stability.

“The macro-environment continues to improve and we remain optimistic about the stability and liquidity in the FX market, declining inflation rate and firm crude oil prices to support economic growth. We aim to strategically explore all available opportunities to expand our customer base and businesses while consolidating on our industry position.