Zenith Bank Plc has reported a one per cent increase in its profit before tax to N180bn in the nine months ended September 30 2021, from N177bn it recorded in the corresponding period of 2020.
The bank also said in a statement on Sunday that its gross earnings increased by two per cent from N509bn in Q3 2020 to N519bn in Q3 2021 due to growth in current account maintenance fees and its electronic products.
Zenith Bank said, “Despite continuing economic uncertainties, the group grew its net earnings through a reduction in the cost of funds while keeping the cost of risk flat—this strengthened earnings per share by one per cent to NGN5.11.
“The group achieved a nine per cent growth in interest income from loans and advances on the back of an increase in gross loans of nine per cent year to date and enhanced efficiency, resulting in a 21 per cent drop in interest expense to N74bn from N94bn. This culminated in growth in net interest income of four per cent, from N225bn recorded at the end of Q3 2020 to N235bn in the current period.
“Total assets also increased by three per cent to N8.8tn in the current period, while total deposits grew by 13 per cent to close at N6tn from N5.3tn as of 31 December 2020, with a substantial contribution from retail deposits.”
Zenith Bank stated that as a result of its focus on increasing retail deposits in the past three years, there was a decrease in its cost of funds to 1.4 per cent from 2.2 per cent YoY.
“For the year’s final quarter, management’s outlook remains positive, buoyed by a declining inflationary trend, expected increase in foreign exchange inflows, and improving oil production. The group remains focused on increasing its retail market share, consolidating its leadership position in the corporate segment and maintaining a robust balance sheet,” the bank added.