Friday October 23, 2015 / 03.56PM /Press Release/ Zenith Bank Plc
Zenith Bank Plc, the Nigerian bank headquartered in Lagos, announces its unaudited results for the 9 months ended 30 September 2015.
Commenting on the results, the management of Zenith bank stated that: “The period ended September 30, 2015 further confirms Zenith’s industry leadership and consistency in delivering superior performance and returns. Driven by our innovative processes, cutting edge technology and committed staff, the group recorded total revenue of N336.8 billion which represents a 23.1% increase over the same period last year. The group also recorded a Profit Before Tax (PBT) of N 104 billion as compared with PBT of N 86.8 billion recorded in prior period, a 19.9% increase.
Our strategic focus on creating competitively priced high quality risk assets is evidenced in the YoY growth of loans and advances which closed at N1.9tn in the third quarter (6.9% growth).The growth in risk assets (priced to optimize returns) was effectively matched by a corresponding increase in interest income of 20.5% compared to the same period last year.
The liquidity ratio for the period ended 30 September 2015 stood at 45%, far in excess of the 30% minimum statutory requirement. Maintaining a stable liquidity ratio over the years is also an indication of the management’s efforts in sustaining a strong and high quality balance sheet. In addition, the group’s NPL ratio further improved by dropping from 2.8% in September 2014 to 1.6% in September 2015 confirming the group’s strong loan quality and robust risk management processes.
The loan-to-deposit ratio stood at 68.5% as at September 2015 compared to 58.5% in 2014 and remains comfortably below the regulatory maximum of 80%.This presents the group with the capacity to participate in prospective lending opportunities going forward”.
Management further remarked that: “the Group continues to diversify its revenue base by focusing on the growth of both its interest and non-interest income lines. This yielded positive results as its non-interest revenue grew by 32% over the prior year period”.
Despite a tough competitive operating environment and the headwinds caused by weaker oil price and tightening monetary policy, management is of the opinion that barring any unforeseen circumstances, the group is poised to continue to take advantage of opportunities to grow its customer base and risk asset volume.