Top Nigerian lender, Zenith Bank Plc has announced its unaudited results for the nine months ended September 2021, indicating a gross earning of N519 billion. This is despite the economic headwinds exacerbated by the Coronavirus (COVID-19) pandemic.
According to the Ebenezer Onyeagwu-led bank unaudited nine months financial results presented to the Nigerian Exchange, NGX, the growth in gross earnings was largely due to an increase in current account maintenance fees and fees from electronic products during the period.
Also profit before tax, PBT also rose to N180 billion, reflecting one percent growth over the N177 billion recorded in the same period in the previous year. Despite continuing economic uncertainties, the Group was able to grow its net earnings through a reduction in its cost of funds while keeping the cost of risk flat.
This strengthened earnings per share, EPS by one per cent to N5.11. The Group achieved a mine per cent growth in interest income from loans and advances on the back of an increase in gross loans of 9 per cent year to date and enhanced efficiency, culminating in a 21 per cent drop in interest expense to N74 billion from N94 billion. This resulted in the growth in net interest income of four percent, from N225 billion recorded at the end of Q3 2020 to NGN235 billion in the current period. Total assets also increased by 3 per cent to N8.8 trillion in the current period, while total deposits grew by 13 per cent to close at N6.0 trillion from N5.3 trillion as at 31 December 2020, with a substantial contribution from retail deposits.
As a result of the focused drive to increase retail deposits in the past three years, there was a decrease in The Group's cost of funds by 35 per cent to 1.4 per cent from 2.2 per cent year-on-year.
The Group continues to make significant progress in its retail banking drive, as evidenced by remarkable growth in transaction volumes and value across its digital platforms and strong growth in customer acquisition.
For the final quarter of the year, management’s outlook remains positive, buoyed by a declining inflationary trend, expected increase in foreign exchange inflows, and improving oil production. The Group remains focused on increasing its retail market share, consolidating its leadership position in the corporate segment and maintaining a robust balance sheet.
In recognition of its track record of excellent performance, Zenith Bank was voted as Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, Bank of the Year
(Nigeria) in The Bank of the Year Awards 2020, Best Bank in Nigeria in the Global Finance World; Best Banks Awards 2020 and 2021, and Best in Corporate Governance; Financial Services; Africa 2020 and 2021 by the Ethical Boardroom.
Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021.
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