Breaking: Zenith Bank nets N111.41bn Half-Year Profit, Offers N0.30 Dividend

Zenith Bank Plc, on Tuesday became the first Tier-1 bank to published its much-awaited audited financials for the half-year ended June 30, 2022, with gross earnings rising by 17.13 percent, while at N111.413bn, profit after tax growth slowed down at 4.98% from N106.119bn. This arose partly from the 69.94 percent leap in income tax expense for the period, from N10.94bn to N18.592bn; while the net profit represented Earnings Per Share of N3.55, up from N3.38 from which the directors have recommended an interim dividend of 30 kobo each, same as was paid in the corresponding period of last year. The payment will be made electronically to the bank accounts of shareholders whose names appear on the register as of the close of business on September 6, 2022, while payment is slated for September 13.

According to details of the audited financials presented to the Nigerian Exchange Limited, gross earnings for the period rose by N345.559bn to N404.763bn; resulting in a net interest income of N184.743bn, compared to the previous N159.94bn.

Impairment charge on financial and non-financial instruments rose to N25.122bn from N19.799bn, representing an increase of N5.323bn or 26.88%; resulting in net interest income after impairment loss on financial and non-financial instruments of N159.621bn, up from N140.141bn.

Net income on fees and commission increased by N16.783bn or 35.21% from N47.664bn to N64.447bn; trading gains appreciated to N85.192bn from N59.275bn, a difference of N25.917bn or 43.72%; other operating income fell from N19.829bn from a loss of N655m in the period under review.

The bulk of gross earnings was the interest and similar income that jumped by N38.792bn or 19.02%, from N203.934bn to N241.726bn; while interest and similar expenses increased to N56.983bn, up by N12.989bn or 29.52%, from N43.994bn. Interest and similar income was lifted significantly by the N200.012bn earned from Nigerian corporate, and retail customers, as well as pension custodian services, compared to the previous N342.517bn. This was followed by N30.816bn, compared to the previous half-year’s N68.955bn from the group’s African business, and N10.949bn income, from N16.309bn from the European operations. Fees and commission income was also driven by the N71.798bn from Nigeria, down from N120.648bn; N4.695bn from Africa, as against N8.59bn; and N2.007bn from Europe; almost the entire N14.891bn of other operating income came from Nigeria; just like trading gains of which Nigeria accounted for N81.177bn.

A further breakdown of the figures showed that interest and similar income was enhanced by the N163.414bn earned from customer loans and advances, which raked in N163.414bn, from N135.426bn; income from placements with banks fell from N5.664bn to N3.861bn; treasury bills income rose marginally from N20.287bn to N21.655bn; while government and other bonds fetched a total of N51.047bn from N41.582bn.

Interest expenses was boosted by the N19.305bn from borrowed funds, up from N16.038bn; ahead of the N17.125bn spent on time deposits, as against N14.239bn.

The biggest contributor to net income on fees and commission was the N24.635bn from fees on electronic products, which rose from N17.048bn; followed by account maintenance fee of N19.771bn from N15.905bn.

In the aftermath of depreciation of property and equipment, amortization of intangible assets and personnel expenses, among others, profit before tax stood at N130.005bn, up from N117.059bn.

On the balance sheet, total assets stood at N10.115tr at the end of June 30, 2022, compared to N9.447tr on December 31, 2021; with loans and advances growing from N3.355tr to N3.499tr; while total liabilities amounted to N8.843tr from N8.168tr, the lion’s share of which was the N7.152tr in customer deposits, from N6.472tr.