Zenith Bank Plc has reported a gross earnings of N509 billion, compared with N491 billion achieved in the corresponding period in 2019, for the third quarter ended September 30, 2020.
In the unaudited results released by the Nigerian Stock Exchange (NSE) on Friday, the Bank explained that the growth was driven by non-interest income which grew by 11 per cent from N157 billion recorded at the end of Q3 2019, to N173 billion reflecting the groups increasingly diversified business model.
The bank said that the performance demonstrated the groups’ resilience against the backdrop of a challenging macro-economic environment owing to the COVID-19 pandemic.
Part of the unaudited account read: “The group profit before pax (PBT) rose marginally to N177 billion at the end of Q3 2020, representing a one per cent growth over the N176 billion recorded in the corresponding period in 2019.
“The result also demonstrates the groups ability to deliver optimal pricing for its interest-bearing assets and liabilities in a declining yield environment, as net interest income grew by 5 per cent Year-on-Year to N225 billion despite the drop in total interest income from N322 billion to N319 billion.
“Interest expense and cost of funds were down by 13 per cent and 27 per cent respectively to close at N94 billion, reflecting the groups robust treasury and liquidity management.
“Total deposits closed at N5.2 trillion at the end of Q3 2020 up from N4.3 trillion in December 2019, dominated by low-cost deposits.
“Retail deposits grew impressively by 58 per cent to N1.7 trillion at the end of Q3 2020 up from N1.1 trillion as at Dec. 2019, underpinned by the continuous expansion and improvement of the group digital platforms.
“In terms of asset quality, the Groups Non-Performing Loan (NPL) ratio improved to 4.80 per cent (FYE 2019: 4.95 per cent), despite growing loans and advances by 17 per cent from N2.5 trillion as at December 2019 to N2.9 trillion at the end of Q3 2020, affirming the groups prudent credit risk management.”