Zenith Bank after tax profit down to N44.8bn in half year 2016, proposes N0.25 kobo interim dividend

By Kayode Ogunwale
Zenith Bank Plc has reported a drop of N8.337 billion in the profit after tax for for the half year ended 30 June 2016.

Highlights of the group’s operating results for the period under review released to the Nigerian Stock Exchange (NSE) in Lagos shows that, it’s profit after tax dropped from N53.180 billion recorded in half year 2015 to N44.843 billion at he end of half year 2016, represented 15.68 per cent decline.

Gross earnings of the group decreased by N14.270 billion or 6.2 per cent, from N229.082 billion in 2015 to end first half 2016 with N214.812 billion.

Interest and similar income of Zenith Bank in half year 2016 stood at N181.408 billion from N176.223 billion it recorded in 2015. While it’s interest and similar expenses decline from N63.585 billion in 2015 to N54.385 billion at the end half year 2016.

In the same vein, it’s profit before tax decreased by N8.920 billion, represented 12.35 per cent to end the half year 2016 at N63.281 billion from N72.201 billion recorded during the same period of 2015.

It’s basic and diluted earnings per share decrease by 26 kobo, from 169 kobo in 2015 half year to 143 kobo at the end of half year 2015.

However, the Non Performing Loan (NPL) of the bank rose to 2.34 per cent from 1.44 per cent.

Total assets of the lender’s increase from N4.007 trillion to N4.357 trillion in half year 2016. Similarly, it’s total liabilities rose from N3.412 trillion to N3.737 trillion at the end of the review period.

Meanwhile, Zenith Bank’s second quarter 2016 show a significant year on year change of-20 per cent in profit before tax to N31.160 billion from N39.073 billion it made in second quarter 2015.

The profit after tax for the second quarter also down from N25.500 billion it made in 2015 to N18.270 at the end of second quarter of 2016.

The gross earnings dipped from N115.760 billion in second quarter 2015 to N115.377 billion at the end of second quarter 2016.

The board of directors, pursuant to the powers vested in it by the provisions of section 379 of the Companies and Allied Matters Act (CAMA) of Nigeria, proposed an interim dividend of N0.25 kobo per share from the retained earnings account as at 30 June 2016. This will be presented for ratification by shareholders at the next annual general meeting.
If the proposed dividend is ratified, the bank will be liable to pay tax in advance totaling N3.45 billion representing 30 per cent of taxable profit N11.49 billion for period ended 30 June 2016.