Monday, October 24, 2016/ 4.30pm /Press Release/ Zenith Bank Plc
Zenith Bank Plc, (Bloomberg: ZENITHBA NL) (“Zenith” or the “Bank”), the Nigerian bank headquartered in Lagos, announces its unaudited results for the 9 months ended 30 September 2016.
In his remarks, the GMD/CEO of Zenith Bank PLC stated that the solid financial performance for the period ended September 30, 2016 affirms Zenith’s industry leadership, resilience and consistency in achieving its strategic objectives despite the challenging business environment.
In the third quarter of 2016, the Group reported gross revenues of N380.4 billion representing a 12.9% increase over the same period in 2015. The Group also recorded an increase of 11.3% and 17.9% (Y-o-Y) in interest and non-interest income respectively. The increase in interest income was propelled by a 22.6% growth in the loan book and improved interest margins. The improvement in non-interest income attests to the group’s success in its income diversification strategy.
The Group’s cost-to-income ratio improved from 55.1% in Q3 2015 to 53.8% in Q3 2016 due to enhanced operational efficiency and ongoing cost-optimisation efforts. Also, the Group's cost of funds decreased by 11.6% despite a 5.2% growth in deposits, reflecting efficient deposit pricing and the consolidation of its deposit mobilization strategy. The increase in Profit Before Tax (PBT) by N17.2bn (or 16.6%) was due to the combined effect of the growth in net interest income, non-interest income and foreign exchange revaluation gains.
In the pursuit of sustaining strong and high quality assets, the Group reported a liquidity ratio of 55% which is firmly above the 30% minimum statutory requirement for the period ended 30 September 2016. The Group’s capital adequacy ratio stood at 19% which is above the 15% regulatory limit and a loan to deposit ratio of 72.3%. The Group’s strength in these prudential ratios reflect its capacity to expand along different products and services.
In spite of the challenging and competitive operating environment, management’s outlook remains positive barring any unforeseen circumstances. Furthermore, the Group is positioned to explore opportunities to grow its customer base and risk assets in strategic sectors.
1. ZENITHBANK Declares N100.07bn PAT in Q3 2016 Result, (SP:N14.75k)