Zenith Bank Plc (NSE – ZENITHBANK) on Friday joined the list of tier one banks to release its financial statements for the nine months ended 30 September 2020, to the Nigerian Stock Exchange and the investing public.
The Bank reported a 3.6% rise in Gross Earnings and a 0.6% (N177.28 billion) rise in profit before taxation. However, the profit after tax increased by 5.7% due to a 29.4% decline in the tax expense to N17.97 billion compared to the N25.46 billion paid in the same period in 2019.
Zenith Bank Plc posted gross earnings amounting to N508.98 billion in nine months of 2020, an increase of 3.6% from N491.27 billion recorded in 2019 nine months. Interest income accounted for 63% (N318.82 billion) of the group’s gross earnings.
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The net interest income stood at N225.179 billion representing an increase of 4.9% from the same period in 2019.
Also, the trading income increased by 34.3% to N89.82 billion in nine months 2020 from 68.86 billion recorded in 2019.
On the other hand, the net fee and commission income declined by 19.9% to N59.12 billion in nine months 2020 from N73.85 billion in 2019.
The bank earned N17.045 billion from Current account maintenance (N15.82 billion in 2019) and N13.12 billion from credit-related fees (N14.26 billion in 2019).
The disproportionate rise in profit before taxation was due to an increase in the Bank’s expense. The personnel expense and operating expense rose by 5.0% and 12.2% respectively to N59.93 billion and N115.24 billion.
Zenith Bank posted a 5.7% rise in profit after tax to N159.32 billion from N150.72 billion. The rise in profit after tax was mainly as a result of the N8.59 billion decline in the tax expense.
The Bank posted earnings per share of N5.07.
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A review of the balance sheet showed that Zenith Bank Plc grew its total assets by 25.6% to N7.97 trillion as at 30 September 2020 compared to the N6.35 billion it stood as at 31 December 2020.
Major changes in the asset’s column are:
- Cash and balances with central banks rose to rose to N1.8 trillion from N936.28 billion
- Treasury bills rose to N1.06 trillion from N991.39 billion
- Loans and advances rose to N2.71 trillion from N2.31 trillion
- Investment in securities rose to N909.92 billion from N591.10 billion
Similarly, the total liabilities increased by 28.4% to N6.938 billion whereas the total equity rose to N1.03 trillion.
Major changes in the liability’s column are:
- Customer deposits rose to N5.22 trillion from N4.26 trillion. This represents 75.3% of the total liability.
- Borrowings rose to N562.68 billion from N322.48 billion.
- Other liabilities rose to N687.50 billion from N363.76 billion.
Major changes in the equity’s column are;
- Retained earnings rose to N459.32 billion from N412.95 billion
- Other reserves rose to N303.35 billion from N257.44 billion.
About Zenith Bank Plc
Zenith Bank Plc (the “Bank”) was incorporated in Nigeria under the Companies and Allied Matters Act as a private limited liability company on May 30, 1990. It was granted a banking licence in June 1990, to carry on the business of commercial banking and commenced business on June 16, 1990.
The Bank was converted into a Public Limited Liability Company on May 20, 2004. The Bank’s shares were listed on October 21, 2004 on the Nigerian Stock Exchange, and in August 2015, the bank was admitted into the Premium Board of the Nigerian Stock Exchange.
The principal activity of the Bank is the provision of banking and other financial services to corporate and individual customers. Such services include granting of loans and advances, corporate finance, and money market activities.
The Bank has six subsidiary companies namely, Zenith Bank (Ghana) Limited, Zenith Pensions Custodian Limited, Zenith Bank (UK) Limited, Zenith Bank (Sierra Leone) Limited, Zenith Bank (Gambia) Limited, and Zenith Nominees Limited. The results of the bank’s subsidiaries have been consolidated in these 9 months period financial statements.
Zenith Bank’s equity price closed 1.73% down on Friday at N25.60 per share. YTD the share price is up by 37.63%.
By: Ifunanya Ikueze
