Zenith Bank Plc has recorded gross earnings of ₦509 billion and Profit Before Tax (PBT) of ₦177 billion in its third quarter (Q3) operations.
The bank’s unaudited results for the third quarter ended September 30, 2020, showed four per cent increase in gross earnings to ₦509 billion from ₦491 billion posted in the corresponding period in 2019 while PBT rose from ₦176 billion to ₦177 billion representing an increase of one per cent. .
Its non-interest income grew by 11 per cent to ₦173 billion from ₦157 billion recorded in 2019. According to the bank, rise in non -interest income reflects the group’s increasingly diversified business model.
The bank said the result also demonstrates the group’s ability to deliver optimal pricing for its interest-bearing assets and liabilities in a declining yield environment.
“Net interest income grew by five per cent Year-on-Year (YOY) to ₦225 billion despite the drop in total interest income from ₦322 billion to ₦319 billion.
“Interest expense and cost of funds were down 13 per cent and 27 per cent to close at ₦94 billion and 2.2 per cent respectively, reflecting the Group’s robust treasury and liquidity management.”
Also, total deposits closed at ₦5.2 trillion, up from ₦4.3 trillion achieved in 2019, dominated by low-cost deposits while retail deposits grew by 58 per cent to ₦1.7 trillion from ₦1.1 trillion recorded in 2019, underpinned by the continuous expansion and improvement of the Group’s digital platforms.
In terms of asset quality of the bank, the group’s Non-Performing Loan (NPL) ratio improved to 4.80 per cent from 4.95 per cent), despite growing loans and advances by 17 per cent from ₦2.5 trillion in 2019 to ₦2.9 trillion 2020, affirming the group’s prudent credit risk management.