Zenith Bank Announces N200bn PAT, Proposed N2.50 Dividend Per Share
Zenith Bank Plc on Friday announced profit after tax (PAT) of N208.8 billion in its full 2019 financial year.
The lender also, proposed a final dividend of NGN2.50/s, which translates to a dividend yield of 12.9 per cent, based on the last closing price of N19.40 (20 February 2020).
The financial report showed profit after tax rose by 8 per cent to N208.8 billion from the N193 billion recorded in the previous year.
The Group also recorded a growth in gross earnings of 5 per cent rising to N662.3 billion from N630.3 billion reported in the previous year. This growth was driven by the 29 pet cent increase in non-interest income from N179.9 billion in 2018 to N231.1 billion in 2019. Fees on electronic products continues to grow significantly with a 108 per cent Year on Year (YoY) growth from N20.4 billion in 2018 to N42.5 billion in the current year. This is a validation of the bank’s retail transformation strategy which continues to deliver impressive results.
Profit before tax also increased by 5% growing from N232 billion to N243 billion in the current year, arising from topline growth and continued focus on cost optimisation strategies. Cost-to-income ratio moderated from 49.3 per cent to 48.8per cent.
The drive for cheaper retail deposits coupled with the low interest yield environment helped reduce the cost of funding from 3.1 per cent to 3.0 pet cent.
However this also affected net interest margin which reduced from 8.9 per vento 8.2 per centin the current year due to re-pricing of interest bearing assets. Although returns on equity and assets held steady YoY at 23.8 per cemtand 3.4% respectively, the Group still delivered an improved Earnings per Share (EPS) which grew 8% from N6.15 to N6.65 in the current year.
The Group increased its share of the market as it secured increased customer deposits across the corporate and retail space as deposits grew by 15% to close at N4.26 trillion. Total assets also increased by 7% from N5.96 trillion to N6.35 trillion. The Group created new viable risk assets as gross loans grew by 22% from N2.016 trillion to N2.462 trillion. This was executed prudently at a low cost of risk of 1.1% and a significant reduction in the non-performing loan ratio from 4.98% to 4.30%. Prudential ratios such as liquidity and capital adequacy ratios also remained above regulatory thresholds at 57.3 per cent and 22.0 per cent respectively.
In demonstration of its commitment to its shareholders, the bank has announced a proposed final dividend pay-out of N2.50 per share, bringing the total dividend to N2.80 per share.
In 2020, the Group remains strategically positioned to capture the opportunities in the corporate and retail segments, while efficiently managing costs and expanding further its retail franchise employing digital assets and innovation.
Consistent with this superlative performance and in recognition of its track record of excellent performance, Zenith Bank was voted asthe Best Commercial Bank in Nigeria 2019 by the World Finance and the Most Valuable Banking Brand in Nigeria 2019 by The Banker. The Bank was also recognized as Bank of the Year and Best Bank in Retail Banking at the 2019 BusinessDay Banks and Other Financial Institutions (BOFI) Awards,