Zenith Bank Plc has announced a Profit Before Tax (PBT) of N232 billion for the 12 months ended December 31, 2018, representing an increase of 16.6 per cent over the N199 billion achieved in the corresponding period of 2017.

The bank’s audited financial results for 2018 showed that profit after tax (PAT) witnessed an impressive growth of 11 per cent year-on-year to N193 billion from N174 billion.

Also, in demonstration of its commitment to its shareholders, the bank has proposed final dividend payout of N2.50 per share, bringing the total dividend to N2.80 per share, representing a yield of 11.2 per cent.

According to a statement by the bank yesterday, the pre-tax profit was achieved through the group’s optimisation of its cost of funds, cost-to-income ratio and cost of risk, ensuring that earnings per share strengthened by 11 per cent to ₦6.15.

“Despite the challenging macro-environment, the Group mitigated the knock-on effects through growth of its net interest income and operating income by 15 per cent and eight per cent respectively, as it was able to ensure improved cost efficiencies across the business. This focus on cost efficiencies is yielding tangible benefits as the Group recorded its lowest ever cost-to-income ratio at 49.3 per cent from 52.8 per cent in 2017.

“The bank’s balance sheet remains shockproof as loan to deposit ratio, liquidity ratio and capital adequacy ratio were 44.2 per cent, 72.0 per cent and 25.0 per cent respectively and all above the regulatory threshold. Our risk-centric approach also ensured that cost of risk reduced significantly by 79 per cent from 4.3 per cent in the prior year to 0.9 per cent in 2018.

“This was reflected through the drop-off in impairment charges by 81 per cent (₦80 billion) compared to 2017, re-affirming the Group’s enhanced asset quality. In the same breadth, coverage ratio increased by 34.2 per cent from 143.4 per cent to 192.4 per cent over the same period, reflecting a prudent disposition to credit risk management.

“Cost of funds also moved in the positive direction, declining by 41 per cent from 5.2 per cent in 2017 to 3.1 per cent for the year, supported by a 33 per cent decrease in interest expense (₦72 billion) over the same period, demonstrating a robust treasury and liquidity management.”

The bank noted that the group’s efforts to deepen its roots in the retail segment have started yielding benefits.
According to the bank, this has resulted in a remarkable increase in the volume of transactions across various electronic platforms as well as significant customer acquisitions.

“This growth in transactions on its digital channels continues to support its retail push as fees from e-products increased by 44 per cent over 2017, with retail deposit balances also growing by 25 per cent. Consistent with this superlative performance and in recognition of its track record of excellent performance, the bank was recently ranked as the Most Valuable Banking Brand in Nigeria in 2018 by The Banker Magazine.”