Corporate Results | |
Corporate Results | |
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Friday, November 20, 2020 / 1:43 PM / NSE / Header Image Credit: Zenith Bank
Zenith Bank Plc released its Q3 2020 Unaudited results for the period
ended September 30th, 2020.
Key Highlights
Visit Zenith Bank Plc IR Page in Proshare MARKETS
Zenith Bank Shows Resilience As Gross Earnings Rises By 4% In Q3 2020
Zenith Bank Plc has announced its
unaudited results for the third quarter ended 30 September 2020 with gross
earnings rising by 4% to N509
billion from N491
billion posted in the same period in the previous year. This performance
demonstrates the Group's resilience against the backdrop of a challenging
macro-economic environment brought about by the Coronavirus (COVID-19)
pandemic.
According to the unaudited account
which was presented to the Nigerian Stock Exchange (NSE), this growth was
driven by non-interest income which grew by 11% to N173 billion from N157 billion
recorded at the end of Q3 2019, reflecting the Group's increasingly diversified
business model. The Group's Profit Before Tax (PBT) rose marginally to N177 billion at the
end of Q3 2020, representing a 1% growth over the N176 billion posted in the
corresponding period last year.
The result also demonstrates the
Group's ability to deliver optimal pricing for its interest-bearing assets and
liabilities in a declining yield environment, as net interest income grew by 5%
Year-on-Year (y-o-y) to N225
billion despite the drop in total interest income from N322 billion to N319 billion.
Interest expense and cost of funds were down 13% and 27% to close at N94 billion and 2.2%
respectively, reflecting the Group's robust treasury and liquidity management.
Total deposits closed at N5.2 trillion at the
end of Q3 2020 up from N4.3
trillion in December 2019, dominated by low-cost deposits. Retail deposits grew
impressively by 58% to N1.7
trillion at the end of Q3 2020 up from N1.1 trillion as at December 2019,
underpinned by the continuous expansion and improvement of the Group's digital
platforms.
In terms of asset quality, the Group's
Non-Performing Loan (NPL) ratio improved to 4.80% (FYE 2019: 4.95%), despite
growing loans and advances by 17 % from N2.5 trillion as at December 2019 to N2.9 trillion at the
end of Q3 2020, affirming the Group's prudent credit risk management. The
liquidity and capital adequacy ratios (CAR), at 67.4% (Bank: 52.5%) and 21.5%
respectively at the end of Q3 2020, remain above regulatory thresholds of 30.0%
and 15.0%.
Zenith Bank Plc has continued to
demonstrate resilience and industry leadership. In recognition of its track
record of excellent performance, Zenith Bank was voted as the Best Commercial
Bank in Nigeria 2019 by the World Finance and the Best Digital Bank in Nigeria
2019 by Agusto and Co. The Bank was also recognised as Bank of the Year and
Best in Retail Banking at the 2019 BusinessDay Banks and Other Financial
Institutions (BOFI) Awards. More recently, the Bank emerged as the Most
Valuable Banking Brand in Nigeria, for the third consecutive year, in the
Banker Magazine "Top 500 Banking Brands 2020", Number One Bank in Nigeria by
Tier-1 Capital in the "2020 Top 1000 World Banks" Ranking published by The
Banker Magazine, Best Bank in Nigeria 2020 in the Global Finance World's Best
Banks Awards 2020, and Bank of the Decade (People's Choice) at the ThisDay
Awards 2020.
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