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Q1 2020 Earnings Update- Zenith Bank Plc

Q1 2020 Earnings Update- Zenith Bank Plc

Growth Accelerated to 5.5% QoQ as Bank Affirms Market Leadership
Zenith Bank Plc (ZENITHBANK) Q1’20 Results– ZENITHBANK recorded a Profit After TAX (PAT) of N50.53 billion, representing marginal growth of 0.60% when compared with N50.23 billion recorded in Q1’19. This was increase in Treasury bill trading income as well as gain in foreign currency revaluation.

Earnings Highlights

  • Net Interest income declined by -5.39% QoQ to N81.50 billion, driven by -9.66% decline in interest expenses while interest income only decreased by 6.65%. Interest and similar income decreased to N114.33 billion in Q1’20 from N122.48 billion recorded in Q1’19. Interest expenses however declined to N32.83 billion from N36.34 billion recorded Q1’19.
  •  Net income on fee and commission declined significantly by 27.58%, bolstered by 37.76% QoQ reduction in fees on electronic products to N5.44 billion while asset based fees fell to N782 million from N1.74 billion. Credit card related fees however grew marginally by 10.17% from N3.54 billion in Q1’19 to N3.90 billion in Q1’20. Overall, net income on fee and commission was N15.44 billion in Q1’20 (compared to N21.32 billion in Q1’19).
  • Cost to income ratio is 52.70%, with operating expenses increasing by 12.83% to N40.19 billion. Personnel cost however declined marginally to N18.16 billion from N18.29 billion recorded in Q1’19.
  •  The marginal growth Profit After Tax by 0.60% to N50.53 billion QoQ is largely attributed gain in foreign exchange revaluation. Also, PBT grew by 2.62% from N57.29 billion in Q1’19 to N58.79 billion in Q1’20.
  • Loans and Advances spiked by 44% to N2.58 trillion from N1.79 trillion recorded in Q1’19. Further, customers’ deposits grew to N4.46 trillion in Q1’20 from N3.57 trillion in Q1’19. Consequently, LDR was 57.84% in Q1’20 which is below the 65% rate prescribed by the CBN.

Download full report here Q1’20 Earnings Update- ZENITHBANK