Tuesday, February 27Inside Business Africa

Zenith Bank posts N208.8 billion profit in full year

Zenith Bank Plc has posted a profit after tax (PAT) N208.8 billion in its 2019 operations, against N193 billion recorded in the corresponding period in 2018.

Specifically, the bank’s audited result for the year ended December 31, 2019, showed eight per cent rise in profit to N208.8 billion from the N193 billion recorded the previous year.

Similarly, its gross earnings rose from N630.3 billion to N662.3 billion, representing an increase of five per cent.

According to the bank, the growth was driven by the 29 per cent increase in non-interest income from N179.9 billion in 2018 to N231.1 billion in 2019.

Its Profit before tax also increased by five per cent from N232 billion to N243 billion in the current year, arising from top line growth and continued focus on cost optimisation strategies, while cost-to-income ratio moderated from 49.3 per cent to 48.8 per cent.

Furthermore, the group created new viable risk assets as gross loans grew by 22 per cent from N2.016 trillion to N2.462 trillion.

The Bank said: “This was executed prudently at a low cost of risk of 1.1 per cent and a significant reduction in the non-performing loan ratio from 4.98 per cent to 4.30 per cent.

“Prudential ratios such as liquidity and capital adequacy ratios also remained above regulatory thresholds at 57.3 per cent and 22.0 per cent respectively.

“In demonstration of its commitment to its shareholders, the bank has announced a proposed final dividend pay-out of N2.50 per share, bringing the total dividend to N2.80 per share.”

The bank said it is strategically-positioned to capture the opportunities in the corporate and retail segments, while efficiently managing costs and expanding further its retail franchise employing digital assets and innovation this year.

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