ZENITH BANK REAFFIRMS MARKET DOMINANCE AND LEADERSHIP WITH Q3 2019 RESULTS
Zenith Bank Plc has announced its unaudited results for the period ended 30 September, 2019, with numbers that clearly demonstrates its market dominance and leadership.
From the
unaudited account which was presented to the Nigerian Stock Exchange (NSE), gross earnings 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.
Despite a
challenging macro-economic backdrop, the Group recorded a significant growth in
Non-Interest Income, expanding by 22% from N128.7 billion in Q3 2018 to N156.8
billion for the current period. Our platforms and channels have been the
enablers of this growth, with fees from electronic products doubling to N35.3
billion from N17.6 billion in Q3 2018.
Our cost
optimization strategies and aggressive retail banking drive are yielding 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.
Our 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 have
directly contributed to our cost of funds improving from 3.3% in Q3 2018 to
2.95% as at Q3 2019.
We have
continued to deploy capital to creating 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. Our 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 compromising our prudence.
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.
As a testament
to this superlative performance and in recognition of its track record of
excellent performance, the bank was recently named as the Bank of the Yearand
the Best Bank in Retail Banking at the 2019 BusinessDay Banks’ and Other
Financial Institutions Awards (BAFI Awards).
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