Zenith Bank posts N180bn Q3 pretax profit

Zenith bank has posted profits for the nine month period ending September 30. This result reflects the bank’s resilience and market leadership. It’s total recorded pretax profit for this stated period stands at N180 billion.

Compared to the N177 billion recorded in the same period last year (and considering the effect of an uncertain and volatile macroeconomic environment brought about by the coronavirus pandemic), the 1% growth is laudable.

As stated in the banking group’s financial results for the nine month period presented to the Nigerian Stock Exchange over the weekend, the firm’s gross income rose by 2%from N509 billion to N519 billion, mostly resulting from a marked spike in account maintenance fees as well as charges from electronic products during the period.

Regardless the ongoing economic uncertainties, the Group, as revealed in its statement grew its net income by cutting down its cost of fund and keeping its cost of risk flat. This further fortified its earnings per share (EPS), pushing it up by one per cent to N5.11. Zenith bank also recorded a 9% rise in interest revenue from loans and advances on the back of a rise in gross loans and 

The Group achieved a nine per cent growth in interest income from loans and advances on the back of an increase in gross loans of nine per cent year-to-date and increased efficiency. This in turn led to a 21 percent drop in interest expense to N74 billion from N94 billion.

The change to these key markers brought about a 4% rise in net interest income, from the N225 billion recorded at the end of the third quarter of 2020, to N235 billion in the current period.

Finally, its total assets rose by 3% to N8.8 trillion in the current period, while total deposits increased by 13% to close at N6 trillion, from N5.3 trillion as at December 31, 2020, with a substantial contribution from retail deposits.