The Zenith Bank Group has recorded a growth in profit before tax of three per cent in the first six months of 2021, rising to N117 billion from N114 billion reported in the previous year.
The Group which proposes 30K interim dividend to shareholders, also recorded a nine per cent growth in non-interest income from N116 billion in June 2020 to N127 billion in 2021, while interest income dropped by six per cent from N217 billion to N204 billion as yields from some interest-bearing assets declined.
This was mitigated by a 26 per cent decrease in interest expense from N60 billion in June 2020 to N44 billion in June 2021 resulting in an increase in net interest income from N157 billion to N160 billion in June 2021.
Overall, the significant reduction in interest expense by 26 per cent and growth in non-interest income by nine per cent gave rise to improved profitability.
The Group’s retail journey continues to deliver positive results. Retail deposits grew by N38.2 billion from N1.72 trillion to N1.76 trillion year-to-date (YTD).
Savings balances grew marginally by two per cent year to date (YTD) to close at N1.18 trillion from N1.16 trillion as of December 2020.
The drive for increased retail deposits and a low-interest yield environment helped reduce the cost of funding from 2.2 per cent to 1.3per cent in the current period.
However, the low-interest environment also affected the net interest margin, which declined from 9per cent to 6.5 per cent in the current year due to the re-pricing of interest-bearing assets.
Operating expenses grew by 10 per cent year on year (YoY) but growth remains below the inflation rate. Further breakdown of the result shows that although returns on equity and assets also reduced from 21.5 per cent to 18.5 per cent and from 3.0 per cent to 2.5 per cent, respectively, the Group improved its Earnings per Share (EPS) which grew two per cent from N3.30 to N3.38 for the half-year ended June 2021.
The Group also increased total customer deposits by eight per cent to close the period at N5.77 trillion, which demonstrates growth in the Group’s market share. Total assets grew marginally to N8.52 trillion as of June 30, 2021, from N8.48 trillion as of December 30 2020.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
We Have Not Had Water Supply In Months ― Abeokuta Residents
In spite of the huge investment in the water sector by the government and international organisations, water scarcity has grown to become a perennial nightmare for residents of Abeokuta, the Ogun State capital. This report x-rays the lives and experiences of residents in getting clean, potable and affordable water amidst the surge of COVID-19 cases in the state…
Selfies, video calls and Chinese documentaries: The things you’ll meet onboard Lagos-Ibadan train
The Lagos-Ibadan railway was inaugurated recently for a full paid operation by the Nigerian Railway Corporation after about a year of free test-run. Our reporter joined the train to and fro Lagos from Ibadan and tells his experience in this report…
and then