August 30, (THEWILL) – Zenith Bank PLC has reported Profit Before Tax (PBT) of N117 billion for the first half of 2021, rising by 3 percent year on year.
According to its audited half-year financial results presented to the Nigerian Exchange (NGX), the bank recorded a growth in profit before tax of 3 percent from N114 billion reported in H1 2020 to NGN117 billion in H1 2021.
The group also recorded a 9 percent growth in non-interest income from N116 billion in June 2020 to N127 billion in June 2021. Overall, a significant reduction in interest expense by 26 percent and growth in non-interest income of 9 percent culminated in its improved profitability.
The group’s retail journey continues to deliver positive results as deposits grew by N38.2 billion from N1.72 trillion to N1.76 trillion year-to-date (YTD).
Savings balances grew marginally by 2 percent YTD to close at N1.18 trillion from N1.16 trillion as at December 2020.
The drive for increased retail deposits and a low-interest yield environment helped reduce the cost of funding from 2.2 percent to 1.3 percent in the current period.
Operating expenses grew by 10 percent YoY, but growth remains below the inflation rate, while the group improved its Earnings per Share (EPS), which grew 2 percent from N3.30 to N3.38 for the half-year ended June 2021.
The group also increased total customer deposits by 8 percent to close the period at N5.77 trillion, demonstrating growth in the market share.
Total assets grew marginally to N8.52 trillion as at June 30, 2021 from N8.48 trillion recorded as at 31 December 2020.
Despite the COVID-19 pandemic induced challenges and the challenging operating environment, Zenith grew its risk assets as gross loans were up by 3 percent YTD, from N2.92 trillion to N2.99 trillion.
This was conservatively achieved at a low Non-Performance Loans (NPL) ratio of 4.51 per cent (FYE 2020: 4.29 per cent) and a reduced cost of risk of 1.3 per cent (June 2020: 1.8 per cent).
Prudential ratios such as liquidity and capital adequacy also remained above regulatory thresholds at 69.9 percent and 22.0 percent, respectively.
On the domestic economy, Nigeria’s Gross Domestic Product (GDP) grew by 5.01 per cent in the second quarter of 2021, and the inflation rate, which peaked in March 2021 at 18.17 per cent, is gradually trending down (currently at 17.38 per cent as at July 2021)
Despite the continued prevalence of the COVID-19 pandemic, the group expressed a cautious optimism that the global economy will continue to recover as vaccination programmes are intensified.
It declared that, the group is well-positioned to maximise the opportunities that these recovering fundamentals present while leveraging technology to expand its retail footprints to deliver improved returns to all its stakeholders.
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