Zenith Bank Plc has announced its unaudited results for the third quarter ended 30 September 2020 with a Profit Before Tax (PBT) of N177 billion, representing a 1% growth over the โฆ176 billion posted in the same period in the previous year. This performance demonstrates the Groupโs resilience against the backdrop of a challenging macro-economic environment brought about by the Coronavirus (COVID-19) pandemic.
According to the unaudited account which was presented to the Nigerian Stock Exchange (NSE), gross earnings were up 4% year-on-year (y-o-y) to โฆ509 billion, driven by non-interest income which increased to โฆ173 billion from โฆ157 billion recorded at the end of Q3 2019, reflecting the Groupโs increasingly diversified business model. Profit After Tax (PAT) grew by 6% to N159 billion from N150 billion in the corresponding period last year. The growth was driven by non-interest income which grew by 11% to โฆ173 billion from โฆ157 billion recorded at the end of Q3 2019, reflecting the Groupโs increasingly diversified business model.
The result also demonstrates the Groupโs ability to deliver optimal pricing for its interest-bearing assets and liabilities in a declining yield environment, as net interest income grew by 5% Year-on-Year (y-o-y) to โฆ225 billion despite the drop in total interest income from โฆ322 billion to โฆ319 billion. Interest expense and cost of funds were down 13% and 27% to close at โฆ94 billion and 2.2% respectively, reflecting the Groupโs robust treasury and liquidity management.
Total deposits closed at โฆ5.2 trillion at the end of Q3 2020 up from โฆ4.3 trillion in December 2019, dominated by low-cost deposits. Retail deposits grew impressively by 58% to โฆ1.7 trillion at the end of Q3 2020 up from โฆ1.1 trillion as at December 2019, underpinned by the continuous expansion and improvement of the Groupโs digital platforms.
In terms of asset quality, the Groupโs Non-Performing Loan (NPL) ratio improved to 4.80% (FYE 2019: 4.95%), despite growing loans and advances by 17 % from โฆ2.5 trillion as at December 2019 to โฆ2.9 trillion at the end of Q3 2020, affirming the Groupโs prudent credit risk management. The liquidity and capital adequacy ratios (CAR), at 67.4% (Bank: 52.5%) and 21.5% respectively at the end of Q3 2020, remain above regulatory thresholds of 30.0% and 15.0%.
Zenith Bank Plc has continued to demonstrate resilience and industry leadership. In recognition of its track record of excellent performance, Zenith Bank was voted as the Best Commercial Bank in Nigeria 2019 by the World Finance and the Best Digital Bank in Nigeria 2019 by Agusto and Co. The Bank was also recognised as Bank of the Year and Best in Retail Banking at the 2019 BusinessDay Banks and Other Financial Institutions (BOFI) Awards. More recently, the Bank emerged as the Most Valuable Banking Brand in Nigeria, for the third consecutive year, in the Banker Magazine โTop 500 Banking Brands 2020โ, Number One Bank in Nigeria by Tier-1 Capital in the โ2020 Top 1000 World Banksโ Ranking published by The Banker Magazine, Best Bank in Nigeria 2020 in the Global Finance Worldโs Best Banks Awards 2020, and Bank of the Decade (Peopleโs Choice) at the ThisDay Awards 2020.