October 20, 2017

Zenith, GTBank record N302.58bn profit in Q3

NSE admits GTBank Holdco structure, lists shares

By Peter Egwuatu
WO top banks in Nigeria, Zenith Bank Plc and Guaranty Trust Bank, GTBank Plc, yesterday, released their unaudited third quarter, Q3, 2017 results, posting a combined group Profit Before Tax, PBT of N302.58 billion.

According to the results released on the Nigerian Stock Exchange, NSE, Zenith Bank recorded a group PBT of N152.552 billion for the third quarter ended September 30, 2017 as against N116.587 billion in the corresponding period of 2016. Also, gross earnings stood at N531.226 billion as against N380.352 billion in the corresponding period of 2016.

On the other hand, GTBank Plc recorded PBT of  N150.03 billion for Q3 ended September 30, 2017, representing a growth of  nine per cent over N137.99 billion recorded in the corresponding period of September 2016. The bank explained that the increase in PBT was primarily from 36 per cent growth in interest income.

A review of the third quarter results show positive growth in some key financial metrics and improved strategic positioning of the brand. The bank closed the third quarter ended September 2017 with Total Assets of N3.213trillion and Shareholders’ Funds of N581.91billion. The Bank’s loan book contracted by 10 per cent from N1.590trillion recorded in December 2016 to N1.428trillion in September 2017 due to conscious effort to de-risk the balance sheet and unwinding (pay-down) of trade obligations.

In terms of asset quality, the bank’s non-performing loans remained low at 3.93 per cent with adequate Coverage ratio of 212.7 per cent. Cost of risk moderated to 0.53 per cent from 3.66 per cent of comparative period of September 2016.

On the backdrop of this result, Post-Tax Return on Equity (ROE) and Post-Tax Return on Assets (ROA) stood at 30.81 per cent and 5.29 per cent respectively.

Commenting on the bank’s financial results, Segun Agbaje, Managing Director/CEO, said: “Given the progress we made in the first half of the year, we came into the second half with the objective of remaining focused on our core strategy of serving the full value chain of our customers’ needs whilst maintaining high standards of customer service.”