Zenith Bank Nets N177.61bn 2017 Profit, Offers N2.45/Share Final Dividend

The board of Zenith Bank Plc, on Monday presented its audited financials for the year ended December 31, 2017, indicating that gross earnings grew faster than profit, even as they have proposed a final dividend per share of N2.45 for approval by shareholders at the next Annual General Meeting (AGM), bringing total dividend for the year to N2.70, as against previous year’s N1.70.
Gross earnings for the period jumped to N745.189bn, up by N237.192bn or 46.69% from N507.997bn in the corresponding period of 2016; the bulk of which was the N474.628bn interest and similar income, which rose from N384.557bn; while interest and similar expenses jumped to N216.637bn from N144.378bn; resulting in net interest income of N257.991bn, as against the N240.179bn of 2016.
Impairment loss on financial assets rose three-fold from N32.35bn in 2016 to N98.227bn; which cut net interest income after impairment loss on financial assets fell to N159.764bn, as against N207.829bn in 2016.
Fee and commission income soared to N90.143bn from N68.444bn; trading gains however made up for the rising costs as it climbed 456.28% from N28.398bn in 2016 to N157.974bn.
Other operating income dropped slightly to N22.444bn from N26.598bn; depreciation of property and equipment increased to N12.428bn from N9.679bn; just as amortization of intangible assets stood at N1.631bn from N1.435bn. Personnel expenses rose to N64.459bn from N59.326bn; just as operating expenses climbed to N148.346bn from N104.081bn.
Profit before tax therefore increased by N46.713bn or 29.8% from N156.748bn to N203.461bn; while income tax expenses dropped to N25.528bn from N27.096bn; leaving a net profit of N177.933bn, as against the preceding year’s N129.652bn, representing an increase of N48.281bn or 37.23%; translating to Earnings Per Share of N5.66, up from N4.12 in 2016.
While the final dividend proposed amounts to N21.08bn; Non-Performing Loans ratio for the year also rose to 4.70, from 3.02.
Total assets for the period rose to N5.695tr from N4.739tr, with loans and advances dropping to N2.tr from N2.289tr; just as total liabilities stood at N4.773tr, up from N3.035tr with customers’ deposits rising to N3.437tr from N2.983tr; just as total shareholders’ funds climbed to N821.658bn from N704.465bn.