Zenith Bank Improves 2019 Earnings Performance …To Pay N2.50 kobo As Final Dividend

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Ebenezer Onyeagwu Zenith Bank Plc GMD

Zenith Bank Plc on Friday February 21, 2020, released its fully year financial statement for the period ended December 31, 2019, showing some improvements in its earnings performances, both at the top and bottom line.

Just as the board of directors has proposed a final dividend of N2.50kobo, which translates to a dividend yield of 12.9 percent, based on the last closing price of NGN19.40 (20 February 2020). bringing the total dividend for the year to N2.80 kobo, when shareholders adds 30 kobo interim dividend that was paid out in 2019.

Qualification date for the corporate action is March 9, while register of members will close, March 10. Payment date is March 16, 2020.

Highlight of the result shows that the performance was supported by strong non-interest income growth, just as interest income declined during the period. However, due to the stronger expansion in non-interest income, the bank recorded good growth in profitability.

Gross revenue was up by 5.1 percent from N630,344 billion in 2018 to N662,251 billion in 2019. Profit before tax was up by N5.0 percent from N231,685 billion in 2018 to N243,294 billion in 2019. Profit after tax jump up by 8.0 percent from N193,424 billion to N208,843 billion in 2019.

Further analyses of the account show that interest income declined by 5.6% y/y to NGN491.27 billion, depressed by weaker income from loans to customers (-14.7% y/y to NGN232.95 billion), although income from investment securities grew over the corresponding period of the prior year (+1.8% y/y to NGN155.72 billion).

however, there was a growth in interest income from loans and advances q/q of 29.1%, reflecting the significant expansion in loans and advances (+26.5% y/y | +12.9% q/q) to NGN2.31 trillion, as the bank strived to meet the minimum LDR limit of 65.0%.

Also, interest expense grew by 2.8% y/y to NGN148.53 billion, reflecting the higher cost of deposits from customers (+12.0% to NGN80.58 billion).

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