In a clear show
of its resilience and market leadership, Zenith Bank has announced an
impressive result for the year ended
December 31, 2019, with profit after tax
(PAT) of N208.8 billion, achieving the feat as the firstNigerian Bank to cross
the N200 billion mark.
According to
the bank’s audited financial results for the 2019 financial year released in
Lagos on Friday, profit after tax rose by 8% to N208.8 billion from the N193
billion recorded in the previous year.
The Group also recorded
a growth in gross earnings of 5% rising to N662.3 billion from N630.3 billion
reported in the previous year. This
growth was driven by the 29% increase in non-interest income from N179.9
billion in 2018 to N231.1 billion in 2019.
Fees on electronic products continues to grow significantly with a 108% Year on Year (YoY) growth from N20.4 billion
in 2018 to N42.5 billion in the current year.
This is a validation of the bank’s retail transformation strategy which
continues to deliver impressive results.
Profit before
tax also increased by 5% growing from N232 billion to N243 billion in the
current year, arising from topline growth and continued focus on cost
optimisation strategies. Cost-to-income ratio moderated from 49.3% to
48.8%.
The drive for
cheaper retail deposits coupled with the low interest yield environment helped
reduce the cost of funding from 3.1% to 3.0%.
However this also affected net interest margin which reduced from 8.9%
to 8.2% in the current year due to re-pricing of interest bearing assets. Although returns on equity and assets held
steady YoY at 23.8% and 3.4% respectively, the Group still delivered an
improved Earnings per Share (EPS) which grew 8% from N6.15 to N6.65 in the
current year.
The Group
increased its share of the market as it secured increased customer deposits
across the corporate and retail space as deposits grew by 15% to close at N4.26
trillion. Total assets also increased by 7% from N5.96 trillion to N6.35
trillion. The Group created new viable
risk assets as gross loans grew by 22% from N2.016 trillion to N2.462 trillion.
This was executed prudently at a low cost of risk of 1.1% and a significant
reduction in the non-performing loan ratio from 4.98% to 4.30%. Prudential
ratios such as liquidity and capital adequacy ratios also remained above
regulatory thresholds at 57.3% and 22.0% 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.
In 2020, the
Group remains 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.
Consistent with
this superlative performance and in recognition of its track record of
excellent performance, Zenith Bank was voted asthe Best Commercial Bank in
Nigeria 2019 by the World Finance and the Most Valuable Banking Brand in
Nigeria 2019 by The Banker. The Bank was also recognized as Bank of the Year and
Best Bank in Retail Banking at the 2019 BusinessDay Banks and Other Financial
Institutions (BOFI) Awards, and was ranked as the Best Digital Bank in Nigeria
2019 by Agusto& Co. Most recently, the Bank emerged as the Bank of the
Decade (People’s Choice) at the Thisday Awards 2020.
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