Zenith Bank Plc has reported a Profit After Tax (PAT) of N208.8 billion, for the year ended December 31, 2019, becoming the first Nigerian bank to cross the N200 billion mark.
All eyes are now on the remaining three Tier-1 banks, First Bank, Access Bank and United Bank for Africa, UBA, to show-up with similar feat or otherwise within this week. Earlier Guaranty Trust Bank had reported PAT of N146.9 billion for the period under review.
According to Zenith Bank’s audited financial results for the 2019 financial year released in Lagos last weekend, it also recorded a growth in gross earnings to N662.3 billion from N630.3 billion reported in the previous year. This growth was driven by the 29 percent increase in non-interest income to N231.1 billion in 2019 from N179.9 billion in 2018. Fees on electronic products continue to grow significantly with a 108 percent Year on Year (YoY) growth to N42.5 billion in the current year from N20.4 billion in 2018.
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This is a validation of the Bank’s retail transformation strategy which continues to deliver impressive results. Profit before tax increased by five percent growing by N243 billion in the current year from N232 billion in the previous year , arising from topline growth and continued focus on cost optimisation strategies.
Cost-to-income ratio moderated from to 48.8 percent from 49.3 percent Although returns on equity and assets held steady YoY at 23.8 percent and 3.4 percent respectively, the Group still delivered improved Earnings per Share (EPS) which grew 8 percent to N6.65 from N6.15. The Bank stated that its Group increased its share of the market as it secured increased customer deposits across the corporate and retail space as deposits grew by 15 percent to close at N4.26 trillion. Other performance indicators show that total assets also increased by 7 percent to N6.35 trillion from N5.96 trillion.
In demonstration of its commitment to its shareholders, the Bank has announced a proposed final dividend pay-out of N2.50 per share, bringing the total dividend to N2.80 per share. The statement from the Bank added: “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 assets and innovation.”
Yetunde Adegoke
