…declares final dividend of N2.50
Zenith bank plc has announced eight per cent increase in profit for financial year ended December 31, 2019.
The result and accounts to the Nigerian Stock Exchange (NSE) on Friday indicated that profit moved from N1983.4billion in 2018 to N208.8billion in 2019.
The group’s profit before tax also grew by five per cent to N243.29billion from N231.7billion reported in 2018, arising from topline growth and continued focus on cost optimisation strategies.
With impressive growth in profit, the management of Zenith Bank declared final dividend of N2.50.
The Group recorded a growth in gross earnings of five per cent rising to N662.3 billion from N630.3 billion reported in the previous year.
This growth was driven by the 29per cent increase in non-interest income from N179.9 billion in 2018 to N231.1 billion in 2019. Fees on electronic products continues to grow significantly with a 108 per cent YoY growth from N20.4 billion in 2018 to N42.5 billion in the current year.
This is a validation of our retail transformation strategy which continues to deliver impressive results.
Profit before tax also increased by five per cent growing from N232 billion to N243 billion in the current year,. Cost-to-income ratio moderated from 49.3 per cent to 48.8 per cent.
The bank in a statement said. “Our drive for cheaper retail deposits coupled with the low interest yield environment helped reduce our cost of funding from 3.1 per cent to 3.0 per cent.
“However this also affected net interest margin which reduced from 8.9 per cent to 8.2 per cent in the current year due to repricing of interest bearing assets. Although returns on equity and assets held steady YoY at 23.8 per cent and 3.4 per cent respectively, the Group still delivered an improved
Earnings per Share (EPS) which grew eight per cent from N6.15 to N6.65 in the current year. The Group increased its share of the market as it secured increased customer deposits across the corporate and retail space as deposits grew by 15 per cent to close at N4.26 trillion. Total assets also increased by seven per cent from N5.96 trillion to N6.35 trillion.
The Group created new viable risk assets as gross loans grew by 22 per cent from N2.016 billion to N2.462 billion. This was executed prudently at a low cost of risk of 1.1 per cent and a significant reduction in the non-performing loan ratio from 4.98 per cent to 4.30 per cent.
Prudential ratios such as liquidity and capital adequacy ratios also remained above regulatory thresholds at 57.3 per cent and 22.0 per cent respectively.”
The management added that, “In 2020, the Group remains strategically positioned to capture the opportunities in the corporate and retail segments while efficiently managing costs and expanding further its retail franchise employing digital innovation and digital assets.”