Zenith Bank Plc H1 2017 Conference Call & Earnings Presentation - The Key Takeaways


Monday, August 14, 2017 4:54PM / Proshare Markets

Zenith Bank Plc held its H1’17 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.

The management of the bank stated that the operating environment was better than what it was in 2016 even though the country is still in a recession and despite a challenging macroeconomic environment and short-to-medium term complications, Nigeria remains Africa’s largest economy with strong sectors and significant opportunities.

The bank management further stated that the introduction of the Investors and Exporters FX Window by the CBN in April 2017 really reduced the pressure in the FX market and the window has recorded a turnover of about $4.35bn as at August 10, 2017

The bank’s
creativity for market dominance and risk management for superior performance has helped it to build a shock-proof balance sheet with its CAR at 21%, liquidity ratio at 61.1%, NPL ratio at 4.3%, cost of risk at 3.6% and coverage ratio at 117% as at H1 2017.

Its strong bottom-line profitability, driven by robust core earnings generation and continued cost control helped it to deliver improved operating leverage and sustainable stakeholder value and in spite of the macroeconomic backdrops, the Bank has delivered an attractive earnings profile, supported by increasing revenue and improving operating efficiency.

The group’s approach to loans and advances is largely cautious and  reflective of the realities of its operating environment while its focus remains on advances to large corporates supported predominantly by demand deposit funds.

Nigeria continues to be the main driver of the bank’s profitability, providing 91.5% of its gross revenue; Rest of Africa accounted for 6.5% and Europe 2%.

In a nutshell, below are the key takeaways from the H1 2017 earnings presentation made by the bank’s management;

The bank would continue to focus on strengthening its relationship management in a bid to surpass stakeholders’ expectations..

The  bank will  continue to grow  its retail business especially in  liability generation.

The bank is committed  to be  a  dominant player in the money market space to drive up income and profitability going forward.

The bank will place more emphasis  on  manufacturing and the  real sector by providing support to local production ; and

The  Group would continue to seek opportunities to grow its risk assets while maintaining a low NPL ratio and sustaining its improved  coverage ratio.

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