Zenith Bank’s profit before tax hits N180bn in Q3 2021
As a testament to its resilience and market leadership, Zenith Bank Plc at the weekend announced its unaudited results for the nine months period ended September 30, 2021 with a Profit Before Tax (PBT) of NGN180 billion, reflecting a 1 per cent growth over the NGN177 billion recorded in the same period in the previous […] The post Zenith Bank’s profit before tax hits N180bn in Q3 2021 appeared first on The Sun Nigeria.
As a testament to its resilience and market leadership, Zenith Bank Plc at the weekend announced its unaudited results for the nine months period ended September 30, 2021 with a Profit Before Tax (PBT) of NGN180 billion, reflecting a 1 per cent growth over the NGN177 billion recorded in the same period in the previous year amidst a challenging macroeconomic environment exacerbated by the Coronavirus (COVID-19) pandemic.
According to the Group’s unaudited nine months financial results presented to the Nigerian Exchange (NGX), gross earnings increased by 2 per cent from NGN509 billion to NGN519 billion largely due to growth in current account maintenance fees as well as fees from electronic products during the period.
Despite persistent economic uncertainties, the Group grew its net earnings through a reduction in the cost of funds while keeping cost of risk flat, thereby strengthening Earnings Per Share (EPS) by 1per cent to NGN5.11. The Group achieved a 9per cent growth in interest income from loans and advances on the back of an increase in gross loans of 9per cent year to date and enhanced efficiency, resulting in a 21 per cent drop in interest expense to NGN74 billion from NGN94 billion. This culminated in growth in net interest income of 4 per cent, from NGN225 billion recorded at the end of Q3 2020 to NGN235 billion in the current period.
Similarly, Total assets also increased by 3per cent to NGN8.8 trillion in the current period, while total deposits grew by 13 per cent to close at NGN6.0 trillion from NGN5.3 trillion as at 31 December 2020, with a substantial contribution from retail deposits. As a result of the focused drive to increase retail deposits in the past three years, there was a decrease in The Group’s cost of funds by 35per cent to 1.4 per cent from 2.2 per cent year-on-year. The Group continues to make significant progress in its retail banking drive, as evidenced by remarkable growth in transaction volumes and value across its digital platforms and strong growth in customer acquisition.
For the year’s final quarter, management’s outlook remains positive, buoyed by a declining inflationary trend, expected increase in foreign exchange inflows, and improving oil production. The Group remains focused on increasing its retail market share, consolidating its leadership position in the corporate segment and maintaining a robust balance sheet.
In recognition of its track record of excellent performance, Zenith Bank was voted as Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and 2021, and Best in Corporate Governance ‘Financial Services’ Africa 2020 and 2021 by the Ethical Boardroom. Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, and Number One Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” Ranking by The Banker Magazine.
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