Zenith Bank Plc has reported a very paltry 0.8per cent profit in the third quarter ended September 30, 2021.
In its unaudited nine months financial results presented to the Nigerian Exchange (NGX), the bank, which was adjudged the Best “Commercial Bank in Nigeria” in the World Finance Banking Awards 2021, reported a 0.8 per cent growth in Profit after tax (PAT) or N160.5bn from N159.3bn it recorded in the prior quarter of 2020.
The Group’s Profit before tax (PBT) rose to N180bn in the current quarter, a meager 1per cent increase from N177bn it recorded in the corresponding period of 2020.
Also, its gross earnings increased marginally by 2per cent from N509bn in Q3 2020 to N519bn in Q3 2021 due to growth in current account maintenance and fees from electronic products during the period.
The Group said it achieved a 9per cent growth in interest income from loans and advances on the back of an increase in gross loans of nine per cent year-to-date and enhanced efficiency, resulting in a 21per cent drop in interest expense to N74 billion from N94 billion. This culminated in growth in net interest income of four per cent, from the N225 billion recorded at the end of the third quarter of 2020, to N235 billion in the current period.
Similarly, the Group’s total assets rose by a meager three per cent to N8.8 trillion in the review period.
Key Highlights:
* Gross Earnings grew by 1.9% to N519bn from N509bn in the prior quarter.
* Profit before tax grew by 1.4% to N180bn from N177bn in 2020.
* Profit after tax grew by 0.8% to N160.5bn from N159.3bn in 2020.
* Net Assets grew by 15% from N1tn to N1.2tn.