By Jeph Ajobaju, Chief Copy Editor
Zenith Bank clinched N150,723 billion profit after tax in the third quarter ending September 30 (Q3 2019), a 5 per cent rise on the N144,179 billion made in the corresponding period last year (Q3 2018).
Profit before tax also grew 5 per cent to a record N176,183 billion, compared with N167,307 billion in Q3 2018, according to unaudited results filed with the Nigerian Stock Exchange (NSE).
Zenith said the numbers “clearly demonstrate” its “market dominance and leadership”, on the backs of gross earnings climbing 4 per cent from N474,607 billion (Q3 2018) to N491,268 billion (Q3 2019).
Zenith Group non-interest income jumped 22 per cent from N128.7 billion to N156.8 billion.
“Our platforms and channels have been the enablers of this growth, with fees from electronic products doubling from N17.6 billion in Q3 2018 to N35.3 billion,” the bank said on Wednesday.
It cited cost optimisation strategies and retail banking drive as having reduced cost-to-income ratio from 51.2 per cent to 50.1 per cent, with earnings per share growing 5 per cent from N4.58 to N4.80.
Retail and corporate banking franchises continued their momentum with customers’ deposits notching 7 per cent to N3.95 trillion, from N3.69 trillion in December 2018.
This, Zenith Bank stressed, is “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 per cent in Q3 2018 to 2.95 per cent as of Q3 2019.”
The bank said it continues to deploy capital to create viable risk assets, with gross loans and advances growing 9 per cent from N2.02 trillion in December 2018 to N2.2 trillion in Q3 2019 across both 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 per cent by December 31, 2019 without compromising our prudence.”
According to Zenith Bank, a “robust risk management framework” slashed non-performing loans (NPL) ratio from 4.98 per cent in December 2018 to 4.95 per cent in Q3 2019.
“Our commitment to maintaining a shock-proof balance sheet remains with liquidity and capital adequacy ratios at 63.8 per cent and 23.8 per cent respectively, both above regulatory thresholds.”
It hopes to sustain competiveness in Q4 2019 as well as corporate market share and build on digital foundations to reinforce retail banking initiatives.
Zenith Bank was recently named the Bank of the Year and the Best Bank in Retail Banking at the 2019 BusinessDay Banks’ and Other Financial Institutions Awards (BAFI Awards).
