Zenith Bank Plc has posted a profit after tax of N121 billion in its results for the nine months ended September 30, 2016.
The result released by the bank to the Nigerian Stock Exchange (NSE) showed, profit before tax grew by 16.6 per cent to N121.2 billion from N104 billion posted in the corresponding period of 2015, while profit after tax (PAT) recorded faster growth of 20.4 per cent to N100 billion, up from N83 billion.
The bank’s total assets hit N4.654 trillion, up from N4.0 trillion in the corresponding period of 2015. Gross earnings rose by 12.9 per cent from N337.9 billion to N380.4 billion, while net interest income grew by 17.6 per cent from N161.4 billion to N189.8 billion. Impairment charges rose by 124.8 per cent to N9.7 billion to N21.9 billion, while other income soared from N9.7 billion in 2015 to N32 billion in 2016.
Despite the macroeconomic headwinds, Zenith Bank Plc attracted more deposits and also gave out more loans and advances. Deposits rose from N2.557 trillion to N2.692 trillion, while loans and advances grew from N1.841 trillion to N2.425 trillion.
Market operators said the performance is highly encouraging, adding that with this, shareholders of the bank should prepare for a bountiful harvest at the end of year. Already, the bank has paid an interim dividend of 25 kobo to the shareholders for the half year ended June 30, 2016.
Reacting to the results, analysts at FBN Quest said given the nine month profit before tax of N121 billion, the N123 billion made by the management for the full year would be surpassed.
The analysts said, “On the back of these results, we would expect consensus PBT for 2016 to move up strongly, from N123bn currently, given that the nine months result is N121 billion. The operating expenses and interest expense figures are disappointing and would draw some scrutiny from the market.