Zenith Bank records a 4% rise in its gross earning in the third quarter of 2020

NIGERIAZenith Bank Plc has announced that its gross earnings rose by 4% to N509 billion (US$1.31bn) for the third quarter ended 30 September 2020 from N491 billion (US$1.27bn) posted in the same period in the previous year.

This performance demonstrates the Group’s resilience against the backdrop of a challenging macro-economic environment brought about by the Coronavirus (COVID-19) pandemic.

According to the unaudited account which was presented to the Nigerian Stock Exchange (NSE), this growth was driven by non-interest income which grew by 11% to N173 billion (US$0.45bn) from N157 billion (US$0.4bn) recorded at the end of Q3 2019, reflecting the Group’s increasingly diversified business model.

The Group’s Profit Before Tax (PBT) rose marginally to N177 billion (US$0.46bn) at the end of Q3 2020, representing a 1% growth over the N176 billion (US$0.45bn) posted in the corresponding period last year.

The result also demonstrates the Group’s ability to deliver optimal pricing for its interest-bearing assets and liabilities in a declining yield environment, as net interest income grew by 5% Year-on-Year (y-o-y) to N225 billion (US$0.58bn) despite the drop in total interest income from N322 billion (US$0.83bn) to N319 billion (US$0.82bn).

Interest expense and cost of funds were down 13% and 27% to close at N94 billion (US$0.24bn) and 2.2% respectively, reflecting the Group’s robust treasury and liquidity management.

Total deposits closed at N5.2 trillion (US$13.41bn) at the end of Q3 2020 up from N4.3 trillion (US$11.09bn) in December 2019, dominated by low-cost deposits. Retail deposits grew impressively by 58% to N1.7 trillion (US$4.38bn) at the end of Q3 2020 up from N1.1 trillion (US$2.84bn) as at December 2019, underpinned by the continuous expansion and improvement of the Group’s digital platforms.

In terms of asset quality, the Group’s Non-Performing Loan (NPL) ratio improved to 4.80% (FYE 2019: 4.95%), despite growing loans and advances by 17 % from N2.5 trillion (US$6.45bn) as at December 2019 to N2.9 trillion (US$7.48bn) at the end of Q3 2020, affirming the Group’s prudent credit risk management.

The liquidity and capital adequacy ratios (CAR), at 67.4% (Bank: 52.5%) and 21.5% respectively at the end of Q3 2020, remain above regulatory thresholds of 30.0% and 15.0%.

Zenith Bank Plc has continued to demonstrate resilience and industry leadership. In recognition of its track record of excellent performance, Zenith Bank was voted as the Best Commercial Bank in Nigeria 2019 by the World Finance and the Best Digital Bank in Nigeria 2019 by Agusto and Co.

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