Zenith Bank Plc has announced about N180billion pre-tax profits in its third quarter (Q3) unaudited results for the nine months ended September 30, 2021, representing a one percent growth above the N177billion posted in the same period of 2020.
The Bank also announced two per cent increase in its gross earnings from N509billion to N519billion year-on-year, which it attributed to growth in current account maintenance fees and its electronic products.
In a report presented to the Nigeria Exchange Group (NGX) on Sunday, 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 N5.11.
“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 N74billion from N94billion. This culminated in growth in net interest income of four per cent, from N225billion recorded at the end of Q3 2020 to N235billion in the current period.
Total assets also increased by three per cent to N8.8trillion in the current period, while total deposits grew by 13 per cent to close at N6trillion from N5.3trillion as of 31 December 2020, with a substantial contribution from retail deposits.
“Total assets also increased by three per cent to N8.8trillion in the current period, while total deposits grew by 13 per cent to close at N6trillion from N5.3trillion as of 31 December 2020, with a substantial contribution from retail deposits.”
Also, a focused drive to increase retail deposits in the past three years saw a decrease in the Group’s cost of funds by 35% to 1.4% from 2.2% year-on-year, while making significant progress in retail banking with remarkable growth in transaction volumes and value across its digital platforms and strong growth in customer acquisition.
Ahead of the last quarter of the year, the management’s outlook remains positive, buoyed by a declining inflationary trend, expected increase in foreign exchange inflows, and improving oil production. The Group reiterated commitment to increasing its retail market share, consolidating its leadership position in the corporate segment and maintaining a robust balance sheet.