Zenith Bank records 35% growth in PAT

Alabingo Finance Report || A review of the financial position of Zenith Bank in Q3 2017 result
released on Thursday, showed lender recorded 35.49 per cent
appreciation in its post-tax profit to N129.24 billion compared N95.39
billion in the corresponding period last year, despite the fact that
country’s economy just rebounded after wallowing in recession for over
a year.
Significant growth in interest and similar income, fees and commission
income and trading income catalyzed gross earnings to increase 39.68
per cent to N531.27 billion from N380.35 billion in September 2016.
While the 26.64 per cent rise in interest and similar income to
N361.79 billion is attributable majorly to earnings from treasury
bills, which was up 125.79 per cent during this, growth in current
account maintenance and fees on electronic products by 109.39 per cent
and 172.67 per cent respectively caused fees and commission income to
climb 53.45 per cent to N71.02 billion in Q3 2017. Income from trading
activities grew by a whopping 398.53 per cent to N81.81 billion as a
result of foreign exchange trading and treasury bills income
increasing 144.38 per cent and 973.73 per cent respectively.
Unlike GTBank, low economic activities in the country worsened the
Zenith Bank’s non-performing loans situation, causing impairment
provision to jump 115 per cent to N47.1 billion from N21.9 billion in
the comparable period in 2016.
Interest and similar expenses were up 67.23 per cent to N160.30
billion in Q3 2017, while operating cost increased 29.91 per cent on
the back of higher travelling and training and development expenses,
which were rose 61.01 per cent and 177.48 percent respectively.
And like many other lenders in the country, which chose to scale down
their risk appetite as part of efforts to tackle rising NPLs, Zenith
Bank loans and advances tailspin -11.11 per cent to N2.16 trillion (Q3
2016: N2.43 trillion) as its total assets rose 10.37 per cent to N5.13
trillion.
However, the lender’s customers’ deposits swelled 13.75 per cent to
N3.06 trillion (Q3 2016: N2.69 trillion) influenced largely by savings
and demand deposits, which grew 20.45 per cent and 13.56 per cent
respectively. The bank’s total liabilities also rose 10.24 per cent to
N4.36 trillion.
Zenith Bank earnings per share was 35.64 per cent better to N4.11 in
Q3 2017 than the N3.03 in Q3 2016.