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H1’19: Zenith Bank grows profit to N111.7bn, declares 30k dividend

Zenith Bank Plc has announced profit before tax (PBT) of N111.7billion and proposed interim dividend of 30 kobo per share for the half-year ended June 2019 (H1’19).

The bank disclosed this in its audited financial results for H1’19 released yesterday which showed improved performance in key financial indicators.

In a statement announcing the results, the bank said: “Gross earnings grew by three percent from ¦ 322.2 billion to ¦ 331.6 billion driven by a significant growth of 24 percent (YoY) in non-interest income from ¦ 88.6 billion in H1 2018 to ¦ 109.7 billion in H1 2019.

“In particular, fees from electronic products increased by ¦ 17 billion (168 percent) from ¦ 10 billion  in H1 2018 to ¦ 27 billion  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 four percent growth over ¦ 107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by nine percent to ¦ 2.83 in H1 2019 from ¦ 2.60 compared to the prior period.

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Between December 2018 and June 2019, the Group’s total deposit increased by 3% with retail deposits growing by ¦ 267 billion (31 percent), from ¦ 861 billion to close at ¦ 1.1 trillion.

“Despite the growth in our deposit base, we optimized interest expense leading to a four percent reduction from ¦ 74.7 billion to ¦ 72.1 billion due to the Group’s improved funding mix and our profound treasury management skills.

The bank further stated, “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 three percent reduction in our loan book from ¦ 2.02 trillion as at December 2018 to ¦ 1.95 trillion at the end of the period.

Expressing confidence of sustaining this growth trend in the second half of the year, the bank said: “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.

VANGUARD

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