Sunday , 23 June 2024
Home Business Despite Headwinds, Zenith Bank’s Profit After Tax Rises by 5% in Q1 2021
BusinessTrending News

Despite Headwinds, Zenith Bank’s Profit After Tax Rises by 5% in Q1 2021

ZENITH BANK

In a clear demonstration of its resilience, Zenith Bank Plc has announced its unaudited results for the first quarter ended 31st March 2021, with Profit After Tax (PAT) rising by 5% to N53.1 billion, from N50.5 billion recorded in March 2020.

 

 

This is despite a very challenging macroeconomic environment aggravated by the COVID-19 pandemic.

 

 

From the unaudited statement of account presented to the Nigerian Stock Exchange (NSE) on Friday, 30th April 2021, the Group’s Profit Before Tax (PBT) also grew by 4%, from N58.8 billion to N61.0 billion in the same period.

 

 

The profitability was driven by the optimisation of the cost of funds and improvement in non-interest income. The Bank’s cost of funds reduced significantly from 2.6% in March 2020 to 1.1% in March 2021. This was also reflected in interest expense which dropped by 45% from N32.8 billion to N18.0 billion over the same period. Non-interest income increased by 10% from N46.6 billion to N51.2 billion, driven by growth in credit-related fees and fees on electronic products.

 

See also  For Thirteen Years in a Row, Zenith Bank Retains Position as Number One Bank in Nigeria by Tier-1 Capital in the 2022 Top 1000 World Banks Ranking

 

 

Non-interest income was boosted by the increase in fees and commission income, which resulted from the increased volume of transactions across all the Bank’s channels. Cost of risk dropped from 0.6% in March 2020 to 0.5% in March 2021, which affirms the Bank’s prudent risk management, even as gross loans increased by 2% from N2.92 trillion to N2.98 trillion in Q1 2021.

 

 

The Bank’s robust customer acquisition strategy and the effectiveness of its electronic platforms and digital channels enabled it to deliver a N54 billion increment in the savings account balance, which is solely retail.

 

 

Customer deposits grew by 6% from N5.34 trillion in December 2020 to N5.68 trillion in March 2021. Transactions on electronic channels also grew astoundingly as new customers continue to be attracted to the Bank’s various user-friendly digital platforms.

 

 

 

Going forward in 2021, the Bank expects that the ongoing economic recovery and improvements in the yield environment will translate into improved numbers for the Group.

See also  It took us 10 days to count Fayose's billions - Banker reveals

 

 

This is expected to be supported by local and international COVID-19 vaccination campaigns, rising commodity prices, and global economic growth of up to 6%, as estimated by the International Monetary Fund (IMF).

 

 

The Group will continue to position itself to take advantage of positive developments in the domestic and global economy to deliver improved financial performance and returns to all its stakeholders.

 

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Multichoice
NewsTrending News

As FX Headwinds, Subscription Fee Issues Take Toll on Multichoice Results as published by Thisday Newspaper

The latest performance report of Multichoice, where it posted losses for the...

Ojude Oba, glo
EntertainmentLife & StyleTrending News

Ojude Oba, Other Festivals Promote National Identity, Unity – Glo

Telecommunications company, Globacom, has said that Ojude Oba and similar festivals in...

GOtv
SportsTrending News

Talent Promotion: Top Nigerian Celebrities Who Were GOtv Ambassadors

GOtv has become a key player in the Nigerian entertainment industry, offering...