Zenith Bank’s Half Year Profits Rises To N111.68bn
Zenith Bank Plc has reported an of increase of N111.68 billion in its half year ended June 30, 2019, financial results, compared to the N107.36bn recorded in the same period in 2018. Profit after tax for the period stood at N88.88bn, up from N81.74bn in 2018
The financial statement of the bank for the period was made available to the Nigerian Stock Exchange.
Although the bank reported N57.11bn drop in the value of its total assets over a six-month period.
The value of the total assets, which stood at N5.95tn as of December 31, 2018, dropped to N5.89tn at the end of the first half of the year.
The bank also reported a decrease in its liabilities from N5.14tn to N5.08tn in the first half of the year.
The bank proposed an inerim dividend of 30 kobo per share for the first half of the year.
The bank also said it planned to accelerate lending in the second half of the year as its loan-to-deposit ratio fell short of the regulator’s minimum target.
The loan book dropped by three per cent to N1.95tn ($5.bn) for the six months through June, while customer deposits increased by the same percentage to N3.8tn.
The Central Bank of Nigeria had in July told all banks to use at least 60 per cent of their deposits for loans by the end of September or face a penalty.
The apex bank said it aimed to fuel credit to grow the economy.
Zenith Bank said in an emailed note to Bloomberg, “We are creatively deploying new retail loan products to ensure we capture a reasonable share of the retail loan market.”
It stated that an increase in lending would enable it to improve its non-performing loan ratio, which deteriorated to 5.3 per cent from five per cent, owing to the drop in credit in the first half.
Shareholders whose names appears on the register of member at the close of business on August 29, 2019, will be entitled to the dividend.
While payment date is September 2, 2019. However Global Depository Receipt (GDR) holders will be paid after the local payment date.
Details of the financial accounts shows that gross earnings stood at N331,586 billion which is above N322,201 billion that was reported same period in 2018. Profit before tax grew from N107,358 billion in 2018 to N111,677 billion in 2019. Profit after tax witnessed an improvement from N81,737 billion in 2018 to N88,882 billion in 2019.