Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2019, recording positive growth across key financial metrics.
The bank also announced a proposed interim dividend pay-out of 30 kobo per share.
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Gross earnings grew by 3% from ₦322.2 billion to ₦331.6 billion driven by significant growth of 24% (YoY) in non-interest income from ₦88.6 billion in H1 2018 to ₦109.7 billion in H1 2019.
In particular, fees from electronic products increased by ₦17bn (168%) from ₦10bn in H1 2018 to ₦27 in H1 2019, demonstrating significant progress in its retail banking initiatives.
The top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to ₦111.7 billion reflecting a 4% growth over ₦107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by 9% to ₦2.83 in H1 2019 from ₦2.60 compared to the prior period.
Between December 2018 and June 2019, the bank’s total deposit increased by 3% with retail deposits growing by ₦267 billion (31%), from ₦861 billion to close at ₦1.1 trillion.
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Despite the growth in its deposit base, Zenith Bank optimised interest expense leading to a 4% reduction from ₦74.7 billion to ₦72.1 billion.
Net Interest Margins (NIMs) witnessed a compression from 10% in the same period last year to 8.6% in H1 2019, as a result of the declining yield environment, however, cost of funds improved from 3.4% to 3.0%.
The bank said its robust risk management ensured that absolute Gross Non-Performing Loans (NPLs) remained flat. However, the marginal movement in NPL ratio was as a result of the 3% reduction in its loan book from ₦2.02 trillion as at December 2018 to ₦1.95 trillion at the end of the period.
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“We are creatively deploying new retail loan products to ensure we capture a reasonable share of the retail loan market. We remain committed to maintaining our strong balance sheet with liquidity ratio at 74.6% and Capital Adequacy Ratio (CAR) at 25%, ensuring we remain above regulatory thresholds.
“Going into the second half of the year, we will continue to consolidate our leadership in the corporate space while our retail banking drive will continue unabated. We expect to see an improvement in economic activities even as we maintain our promise of delivering a unique service experience to our customers,” the bank said.
