Zenith Bank’s Profit Rises by 2.6% in 6 Months

Bukola Olanrewaju August 30, 2021 BUSINESS, Banking and Finance Leave a comment

Zenith Bank Plc has posted a profit before tax (PBT) of N117.05 billion for six months as at June 30, against N114.12 billion achieved in the comparative period of 2020.

Despite the challenges, the most profitable bank in Nigeria announced N106.12 billion profit in H1 2021, about two per cent increase from N103.83 billion reported in H1 2020.

Profit before tax also rose by three per cent to N117.06 billion in H1 2021 from N114.12 billion reported in H1 2020.

This was stated in the company’s interim report signed by the Company Secretary, Mr Micheal Otu, posted on the website of the Nigerian Exchange (NGX) Ltd. on Friday in Lagos.

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According to the result, gross earnings of the Group stands at N345.55 billion for the period under review, as against N346.08 billion reported in the comparative period of 2020.

Also, profit after tax (PAT) grew from N106.11 billion recorded as at June 30, whereas N103.82 billion was posted in the corresponding period of 2020.

The result also showed company’s income tax expense of N10.94 billion for the period under review, against N10.29 billion recorded in 2020.

Also, basic, and diluted earnings per share of the bank stands at N3.38 in the period under review, while N3.30 was recorded in thee same period of 2020.

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With growth in profits, Zenith Bank Plc’s return on average equity (ROAE) closed H1 2021 at 18.8 per cent as against 21.5 per cent reported in H1 2020 while return on average assets (ROAA) dropped to 2.5 per cent from three per cent in H1 2020.

Overall, the significant reduction in interest expense by 26 per cent and growth in non-interest income by nine per cent gave rise to improved profitability.

Zenith bank in the period under review was able to effectively utilized its fees and commission, trading gains business position to drive Non-Interest Income (NII).

According to the result, the Board of Directors proposed an interim dividend of 30 kobo per share, same as the 2020.

It explained that the decision would be presented for ratification by the shareholders at the next Annual General Meeting.

The Group’s audited results for the period under review shows a stable performance in balance sheets position as customer deposits and gross loans advance by eight per cent and three per cent to drive total assets to close the period with total assets of N8.52 trillion.

The solid financial performance for the period affirms Zenith Bank industry leadership position in profits, resilience and consistency in achieving its strategic objectives.