Zenith Bank Reports 25% Increase In Profits
Zenith Bank Plc in its 2016 audited accounts maintained an impressive growth in profitability and dividend, reaffirming the bank’s position as one of the most profitable and well managed financial institutions in the country.
This was shown in the bank’s audited result for the year ended December 2016 released yesterday to the Nigerian Stock Exchange (NSE).
The Bank’s profit before tax (PBT) went up by 24.8 per cent while return on average equity (RoAE) improved to 20 per cent versus the 18.4 per cent recorded in 2015.
This resulted in earnings per share of N4.12 for the period, compared with an EPS of N3.36 in the previous year.
On the heels of impressive profit, Zenith Bank management delights shareholders with a final dividend of N1.77 as against N1.55 in 2015, which in addition to the 25 kobo paid as interim dividend equates to N2.02 compared to N1.80 in 2015, full year.
The bank showed 16.14 per cent growth in gross earnings which stood at N507.997 billion from N432.535 billion achieved during the same period in 2015.
Interest income for the period rose to N81 billion compared with N71 billion posted in the similar period of 2014 translating to 14 per cent increase.
Non-interest income appreciated 45.9 per cent from N84.6 billion in 2015 to N123.4 billion, while operating expenses appreciated by four per cent to N174.52 billion.
Analysis of the bank’s balance sheet showed a rise in loans and advances to N2.14 trillion implying seven per cent appreciation when compared with N1.99 trillion posted in the similar period of 2015. Similarly, customers’ deposit and total assets increased by 16.6 per cent and 6.91 per cent to N2.98 trillion and N4.01 trillion respectively during the period.
Market analysts generally commended the performance of the bank, noting that the results were above market estimates.
They also said that the stock market will react to the bank stock price.
