Zenith Bank Plc yesterday announced its audited results for the half year ended 30 June 2019, recording positive growth across key financial metrics. As a testament to its commitment to its shareholders, the bank also announced a proposed interim dividend pay-out of 30 kobo per share.
The bank said its gross earnings grew by 3% from ₦322.2 billion to ₦331.6bn driven by a significant growth of 24% (YoY) in non-interest income from ₦88.6bn in H1 2018 to ₦109.7bn in H1 2019.
In particular, fees from electronic products increased by ₦17bn (168%) from ₦10bn in H1 2018 to ₦27 in H1 2019, demonstrating significant progress in our retail banking initiatives.
This top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to ₦111.7bn reflecting a 4% growth over ₦107.4bn reported in H1 2018 with earnings per share (EPS) increasing by 9% to ₦2.83 in H1 2019 from ₦2.60 compared to the prior period. Between December 2018 and June 2019, the Group’s total deposit increased by 3% with retail deposits growing by ₦267bn (31%), from ₦861bn to close at ₦1.1 trillion. ‘’Despite the growth in our deposit base, we optimized interest expense leading to a 4% reduction from ₦74.7 billion to ₦72.1 billion due to the Group’s improved funding mix and our profound treasury management skills. Net Interest Margins (NIMs) witnessed a compression from 10% in the same period last year to 8.6% in H1 2019, as a result of the declining yield environment but cost of funds improved from 3.4% to 3.0%’’, the bank said.