Zenith Bank reaffirms market leadership crosses N200bn mark​

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In a clear show of its resilience and market leadership, Zenith Bank has announced an impressive result for the year ended December 31, 2019, with profit after tax (PAT) of N208.8 billion, achieving the feat as the first Nigerian Bank to cross the N200 billion mark.

According to the bank’s audited financial results for the 2019 financial year released in Lagos on Friday, profit after tax rose by 8 percent to N208.8 billion from the N193 billion recorded in the previous year.

The Group also recorded a growth in gross earnings of 5 percent rising 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 from N179.9 billion in 2018 to N231.1 billion in 2019.​ Fees on electronic products continues to grow significantly with a 108 percent Year on Year (YoY) growth from N20.4 billion in 2018 to N42.5 billion in the current year.​ This is a validation of the bank’s retail transformation strategy which continues to deliver impressive results.

Profit before tax also increased by 5 percent growing from N232 billion to N243 billion in the current year, arising from topline growth and continued focus on cost optimisation strategies. Cost-to-income ratio moderated from 49.3 percent to 48.8 percent.

The drive for cheaper retail deposits coupled with the low interest yield environment helped reduce the cost of funding from 3.1 percent to 3 percent. However this also affected net interest margin which reduced from 8.9 percent to 8.2 percent in the current year due to re-pricing of interest bearing assets.​ 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 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 percent to close at N4.26 trillion. Total assets also increased by 7 percent from N5.96 trillion to N6.35 trillion.​ The Group created new viable risk assets as gross loans grew by 22 percent from N2.016 trillion to N2.462 trillion. This was executed prudently at a low cost of risk of 1.1 percent and a significant reduction in the non-performing loan ratio from 4.98 percent to 4.30 percent. Prudential ratios such as liquidity and capital adequacy ratios also remained above regulatory thresholds at 57.3 percent and 22 percent respectively.

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.

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.