Zenith Bank Plc has announced its unaudited results for the third quarter ended 30 September 2020 with with a Profit Before Tax (PBT) of
According
to the unaudited account which was presented to the Nigerian Stock Exchange
(NSE), gross
earnings were up 4% year-on-year (y-o-y) to ₦509
billion, driven by non-interest income which increased to ₦173
billion from ₦157 billion
recorded at the end of Q3 2019, reflecting the Group’s increasingly
diversified business model. Profit After Tax (PAT) grew by 6% to N159 billion from N150 billion in the
corresponding period last year. The growth was driven by
non-interest income which grew by 11% to ₦173 billion from ₦157
billion recorded at the end of Q3 2019, reflecting the Group’s increasingly
diversified business model.
The
result also demonstrates the Group’s ability to deliver optimal pricing for its
interest-bearing assets and liabilities in a declining yield environment, as
net interest income grew by 5% Year-on-Year (y-o-y) to ₦225
billion despite the drop in total interest income from ₦322
billion to ₦319 billion. Interest expense and cost of funds were down 13%
and 27% to close at ₦94 billion and 2.2% respectively, reflecting the Group’s robust
treasury and liquidity management.
Total
deposits closed at ₦5.2 trillion at the end of Q3 2020 up from ₦4.3
trillion in December 2019, dominated by low-cost deposits. Retail deposits grew
impressively by 58% to ₦1.7 trillion at the end of Q3 2020 up from ₦1.1
trillion as at December 2019, underpinned by the continuous expansion and
improvement of the Group’s digital platforms.
In
terms of asset quality, the Group’s Non-Performing Loan (NPL) ratio improved to
4.80% (FYE 2019: 4.95%), despite growing loans and advances by 17 % from ₦2.5
trillion as at December 2019 to ₦2.9 trillion at the
end of Q3 2020, affirming the Group’s prudent credit risk management. The
liquidity and capital adequacy ratios (CAR), at 67.4% (Bank: 52.5%) and 21.5%
respectively at the end of Q3 2020, remain above regulatory thresholds of 30.0%
and 15.0%.
Zenith
Bank Plc has continued to demonstrate resilience and industry leadership. In
recognition of its track record of excellent performance, Zenith Bank was voted
as the Best Commercial Bank in Nigeria 2019 by the World Finance and the Best
Digital Bank in Nigeria 2019 by Agusto and Co. The Bank was also recognised as
Bank of the Year and Best in Retail Banking at the 2019 BusinessDay Banks and
Other Financial Institutions (BOFI) Awards. More recently, the Bank
emerged as the Most Valuable Banking Brand in Nigeria, for the third
consecutive year, in the Banker Magazine “Top 500 Banking Brands 2020”, Number
One Bank in Nigeria by Tier-1 Capital in the “2020 Top 1000 World Banks”
Ranking published by The Banker Magazine, Best Bank in Nigeria 2020 in the Global
Finance World’s Best Banks Awards 2020, and Bank of the Decade (People’s
Choice) at the ThisDay Awards 2020.
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