Zenith Bank Plc has reported a 6 percent Year-on-Year (YonY) growth in its recently released Unaudited Consolidated Financial Statement for the nine months ended September 2020. The result shows a Profit After Tax (PAT) of N159.3 billion from the N150.7 billion recorded in the same period of 2019. Analysis of the report revealed a 4 percent YonY growth in Gross Earning from N491.3 billion to N509.0 billion on the positive growth of 5 percent and 11 percent in Net-Interest and Non-Interest Income for the nine-month period under review respectively.
Zenith’s Net Interest Income increased by 5 percent YonY to N225.2 billion from N214.6 billion in the corresponding period of 2019: the 1 percent YonY drop in Interest Income to N318.8 billion was compensated by the 13 percent YonY decline in Interest Expenses for the period. A drop of 46 percent in Interest earned from the Treasury bill was largely responsible for the declined Interest Income, while a 32 percent reduction in Interest paid on Borrowed funds was the major sentiment for Interest Expenses drop for the period under review.
Non-Interest Income grew marginally by 11% YonY to N173.5 billion from N156.8 billion in Q3 2019: a 34 percent YonY growth in Trading Income (N89.8bn from N66.9bn) and the 53 percent YonY growth in Other Income (N24.6bn from N16.1bn) was able to offset the 20 percent YonY drop (N59.1bn from N73.9bn) in Net Fee and Commission Income for the period ended September 2020.
The 5 percent growth in Interest Income for the period ended September 2020 and the double-digit growth in Non-Interest Income was enough to give Zenith Bank an outstanding nine-month result for the year 2020 in spite of a 38 percent YonY increase in Credit Impairment Charges (N25.1bn from N18.3bn) for Q3 2020,
Here are the other highlights of the Q3 2020 results released by Zenith Bank Plc
- Gross Earning of N508.98 billion, up 4% YonY, Sept 2019 – N491.27 billion
- Net Interest Income of N2245.2 billion, up 5% YonY, Sept 2019 – N214.6 billion
- Non-Interest Income of N173.5 billion, up 11% YonY, Sept 2019 – N156.8 billion
- Impairment Charge for Credit Losses up 38% YonY to N25.1 billion, Sept 2019 – N18.3 billion
- Operating Expenses of N196.3 billion up 11% YonY, Sept 2019 – N176.9 billion
- Profit Before Tax up 1% YonY to N177.3 billion, Sept 2019 – N176.2 billion
- Profit After Tax for the 9-month period up 6% YonY to N159.3 billion from N150.7 billion
- Earnings Per Share also up by 6% YonY to 507 kobo from 480 kobo
Statement of Financial Position
The Balance Sheet size of Zenith Bank Plc had an impressive 9-month double-digit growth for the period ended 30 September 2020. Total Assets grew 33% YTD; Deposit from Customers was also up by 32%; Customer Loans and Advances was up by 33% YTD, while Total Equity grew by 18%.
- Total Assets up 33% year to date (YTD) to N7.97 trillion, Dec 2019 – N5.98 trillion
- Customer Loans and Advances up 33% YTD to N 2.7 trillion, Dec 2019 – N2.0 trillion
- Deposits from Customers up 32% YTD to N5.22 trillion, Dec 2019 – N3.95 trillion
- Total Equity up 18% YTD to N1.03 trillion, Dec 2019 – N0.87 trillion