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.
1. Zenith Bank Plc H1 Results – Forward Hump Boosts Earnings
2. Zenith Bank Plc - Earnings Beat as FX Income Spike Dwarfs Huge Provision
3. Zenith Bank Plc: Net Interest Income Down by 3.2% QoQ in Q2 2017
4. Zenith Bank Reports Q2 2017 Results - Loan Loss Impairments and OPEX Spiked
5. ZENITHBANK Declares N75.32bn PAT in Q2 2017 Results, Proposes 25 Kobo Interim Dividend (SP:N24.00k)
6. ZENITHBANK Declares N37.49bn PAT in Q1 2017 Results, (SP:N14.9k)
7. ZENITHBANK Declares N129.6bn PAT in 2016 Audited Results; Proposes N1.77k Final Dividend,(SP:N14.73)
8. Zenith Bank Plc to Hold Board Meeting on January 24th, 2017
9. Zenith Bank Plc Records Slight Strong Q3 2016 Results; Maintains Outperform Rating
10. ZENITHBANK Declares N100.07bn PAT in Q3 2016 Result, (SP:N14.75k)
11. Zenith Bank Plc Earnings Update - More Prudence as Bank Adopts New Impairment Model
12. ZENITHBANK Half-Year Earnings Presentation: The key takeaways
13. Zenith Bank Plc Earnings Miss as Loan Loss Expense Pressures PAT
14. Zenith Bank Plc Records Group Capital Adequacy Ratio of 19% in Q2'16
15. Zenith Bank Reports Q2 2016 Results; Significant FX-Related OCI Gains Boosted PAT
16. Zenith Bank Plc Records Group Capital Adequacy Ratio of 19% in Q2'16
17. ZENITHBANK Declares N44.84bn PAT in Q2 16 Result Proposes 25k Interim Dividend SP N15.60k
18. Zenith Bank Plc Seeks Extension to Submit Half Year Financial statements on August 31 2016