Zenith Bank Plc, on Monday, August 19 announced its audited results for the half year ended 30 June 2019, recording positive growth across key financial metrics, and thereby affirming the bank’s position as one of the leading financial institutions in Africa.
In a clear demonstration of its resilience and strong market share, and as a testament to its commitment to its shareholders, Zenith bank also announced a proposed interim dividend pay-out of 30 kobo per share.
According to the bank, Gross earnings grew by 3 per cent from ₦322.2 billion to ₦331.6 billion driven by a significant growth of 24 per cent (YoY) in non-interest income from ₦88.6 billion in H1 2018 to ₦109.7 billion in H1 2019.
In particular, fees from electronic products increased by ₦17b (168%) from ₦10b in H1 2018 to ₦27 in H1 2019, demonstrating significant progress in our retail banking initiatives.
This top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to ₦111.7 billion reflecting a 4 per cent growth over ₦107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by 9 per cent to ₦2.83 in H1 2019 from ₦2.60 compared to the prior period.
Between December 2018 and June 2019, the Group’s total deposit increased by 3 per cent with retail deposits growing by ₦267 billion (31%), from ₦861 billion to close at ₦1.1 trillion. Despite the growth in our deposit base, we optimized interest expense leading to a 4 per cent reduction from ₦74.7 billion to ₦72.1 billion due to the Group’s improved funding mix and our profound treasury management skills.
Net Interest Margins (NIMs) witnessed a compression from 10 per cent in the same period last year to 8.6 per cent in H1 2019, as a result of the declining yield environment but cost of funds improved from 3.4 per cent to 3.0 per cent.
Our robust risk management ensured that our absolute Gross Non-Performing Loans (NPLs) remained flat. However, the marginal movement in NPL ratio was as a result of the 3 perv cent reduction in our loan book from ₦2.02 trillion as at December 2018 to ₦1.95 trillion at the end of the period.
We are creatively deploying new retail loan products to ensure we capture a reasonable share of the retail loan market. We remain committed to maintaining our strong balance sheet with liquidity ratio at 74.6 per cent and Capital Adequacy Ratio (CAR) at 25 per cent, ensuring we remain above regulatory thresholds.
Going into the second half of the year, we will continue to consolidate our leadership in the corporate space while our retail banking drive will continue unabated. We expect to see an improvement in economic activities even as we maintain our promise of delivering a unique service experience to our customers.
Consistent with this superlative performance and in recognition of its track record of excellent performance, the bank was recently ranked as the Most Valuable Banking Brand in Nigeria in 2018 by The Banker Magazine.
Similarly, Zenith Bank was recognised as the Best Corporate Governance Bank in Nigeria by The World Finance for the sixth time just as Ethical Boardroom, a Europe based Boardroom watchdog reaffirmed this recognition by naming the bank as the Best Bank in Corporate Governance in 2018.
Recognition has also come the way of the bank as it was recently named as the Best Institution in Sustainability Reporting in Africa 2018 (SERAS Awards) and the Bank of the Year 2018 (BusinessDay).