Zenith bank plc has announced six per cent increase in profit in its unaudited nine months ended September 30, 2020 results.
The lender on the Nigerian Stock Exchange (NSE) on Friday disclosed profit of N159.32billion in nine months of 2020 as against N150.7billion reported in nine months of 2019.
According to the bank, it delivered a profit before Tax (PBT) of N177 billion at the end of September 30, 2020, representing a one per cent growth over the N176 billion posted in the same period in the prior year.
The bank in a statement stated that, “This performance demonstrates the bank’s resilience against the backdrop of a challenging macro-economic environment brought about by COVID-19.
“Gross earnings were up four per cent year-on-year(y-o-y) to N 509 billion, driven by non-interest income which increased to N 173 billion from N 157 billion recorded at the end of Q3 2019, reflecting the Group’s increasingly diversified business model.
“This result also demonstrates the Group’s ability to deliver optimal pricing for its interest-bearing assets and liabilities even in a declining yield environment, as net interest income grew by five per cent y-o-y to N225 billion despite the drop in total interest income from N322 billion to N319 billion.
“Interest expense and cost of funds were down 13per cent and 27per cent to close at N94 billion and 2.2per cent respectively, reflecting the Group’s robust treasury and liquidity management.
“Total deposits closed at N5.2 trillion at the end of Q3 2020 up from N4.3 trillion in December 2019, dominated by low-cost deposits.
“Retail deposits continued to grow strongly to N1.7 trillion at the end of Q3 2020 up from N1.1 trillion as at December 2019, underpinned by the continuous expansion and improvement of the Group’s digital platforms.”
The bank in a statement accessed by Western Post added that, “In terms of asset quality, the NPL ratio improved to 4.80per cent (FYE 2019: 4.95per cent), despite growing loans and advances by 17per cent from N2.5 trillion as at December 2019 to N2.9 trillion at the end of Q3 2020, affirming the Group’s prudent credit risk management.
“Our liquidity and capital adequacy ratios (CAR), at 67.4 per cent (Bank: 52.5 per cent) and 21.5 per cent respectively at the end of Q3 2020, remain above regulatory thresholds of 30per cent and 15.0 per cent respectively. This gives headroom for providing support to businesses while creating risk assets opportunities in line with our credit risk management framework.
“Going into the final quarter of the year, we will remain resilient as we keep adapting to the headwinds in the operating environment and continue to deliver enhanced customers experience and stakeholders value.”