Zenith Bank First Quarter Earnings Drop by 4%

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Zenith Bank Plc released its first quarter result for three months ended March 31, 2016 today Thursday April 18, 2016 with a drop in profit after tax by 4 percent from N27,680 million recorded in 2015 to N26,573 million in 2016. Gross earnings for the period under review went down by 12.25 percent to N99,435 million compared to N113,322 million that was declared same period in 2015.\r\nOther highlight of the unaudited 2016 first quarter financial statements shows that earnings per share was also down by 3.95 percent from 0.88 kobo in 2015 to 0.84 kobo in 2016. Zenith Bank interest income increased by 3.4 percent, aided by 1.4 percent increase in net loans. On the other hands, interest expense dropped by 32.9 percent, with the bank benefiting from the low interest rate environment as interest charges on the typically expensive term deposit fell by 47.3 percent. \r\nConsequently, Net interest income surged by 36.4 percent. Non-interest income slumped by 52.0 percent, which market watchers attributed as the main driver of the drop in gross earnings. Key drivers for the weak non-interest income performance include an exchange rate loss of N2.29 billion versus a gain of N4.3 billion in the previous year and an 85 percent decline in foreign currency revaluation gains. Operating expense decreased by 3.2 percent while impairment charges increased by increased by 23.3 percent. Zenith Bank share price closed at N11.45kobo.

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