Zenith Bank Hits N331.6bn Gross Earnings, Announces 30 Kobo Per Share Interim Dividend – IT NEWS NIGERIA

Zenith Bank Upgrades Its Mobile Banking Application – IT NEWS NIGERIA

IT NEWS NIGERIA:

Zenith Bank Plc
has announced its audited results for the half year ended 30 June 2019 that gross
earnings grew by 3% from ₦322.2 billion
to ₦331.6 billion and this is driven by a
significant growth of 24% (YoY) in non-interest income from ₦88.6 billion in H1 2018 to ₦109.7 billion in H1 2019.

This is a clear demonstration of its
resilience and strong market share as it recorded positive growth across key
financial metrics, thus affirming the bank’s position as one of the leading
financial institutions in Africa.  As a
testament to its commitment to its shareholders, the bank also announced a
proposed interim dividend pay-out of 30 kobo per share.

In particular, fees from electronic
products increased by ₦17bn (168%)
from ₦10bn in H1 2018 to ₦27 in H1 2019, demonstrating significant progress
in our retail banking initiatives. This top-line growth filtered through to the
bottom-line as Profit Before Tax (PBT) increased to ₦111.7 billion reflecting a 4% growth over ₦107.4 billion reported in H1 2018 with earnings
per share (EPS) increasing by 9% to ₦2.83 in H1
2019 from ₦2.60 compared to the prior
period.

Between December 2018 and June 2019, the Group’s total deposit increased by 3% with retail deposits growing by ₦267 billion (31%), from ₦861 billion to close at ₦1.1 trillion. Despite the growth in our deposit base, we optimized interest expense leading to a 4% reduction from ₦74.7 billion to ₦72.1 billion due to the Group’s improved funding mix and our profound treasury management skills. Net Interest Margins (NIMs) witnessed a compression from 10% in the same period last year to 8.6% in H1 2019, as a result of the declining yield environment but cost of funds improved from 3.4% to 3.0%.

Our robust risk management ensured
that our absolute Gross Non-Performing Loans (NPLs) remained flat. However, the
marginal movement in NPL ratio was as a result of the 3% reduction in our loan
book from ₦2.02 trillion as at December
2018 to ₦1.95 trillion at the end of the
period. We are creatively deploying new retail loan products to ensure we
capture a reasonable share of the retail loan market. We remain committed to
maintaining our strong balance sheet with liquidity ratio at 74.6% and Capital
Adequacy Ratio (CAR) at 25%, ensuring we remain above regulatory
thresholds. 

Going into the second half of the
year, we will continue to consolidate our leadership in the corporate space
while our retail banking drive will continue unabated. We expect to see an
improvement in economic activities even as we maintain our promise of
delivering a unique service experience to our customers. 

Consistent
with this superlative performance and in recognition of its track record of
excellent performance, the bank was recently ranked as the Most Valuable
Banking Brand in Nigeria in 2018 by The Banker Magazine. Similarly, Zenith Bank
was recognized as the Best Corporate Governance Bank in Nigeria by The World
Finance for the sixth time just as Ethical Boardroom, a Europe based Boardroom
watchdog reaffirmed this recognition by naming the bank as the Best Bank in
Corporate Governance in 2018. Recognition has also come the way of the bank as
it was recently named as the Best Institution in Sustainability Reporting in
Africa 2018 (SERAS Awards) and the Bank of the Year 2018

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