Home > Business > Zenith Bank Q1 2016 Earnings Shrink By 12.25%

Zenith Bank Q1 2016 Earnings Shrink By 12.25%

By Ololade Julianah, Lagos

In what appears a red signal to its shareholders, Zenith Bank’s first quarter ended March 31, 2016 has revealed a drop in profit after tax from N27.680 billion in the comparable period of 2015 to N26.573 billion in 2016, representing a drop of N1.107 billion or 4 per cent.

Gross earnings for the period dropped to N99.435 billion from N113.322 billion, interest and similar income stood at N84.177 billion from N81.421 billion, net interest income rose to N58.157 billion from N42.631 billion, while impairment charge for credit loss rose to N2.577 billion from N2.090 billion.

Fees and commissions income dropped to N15.668 billion from N17.219 billion, other income for the period dropped to N1.483 billion from N9.259 billion, operating expenses dropped to N19.287 billion to N21.450 billion, total comprehensive income for the period also dropped to N26.720 billion from N28.735 billion, while profit before tax went down from N33.128 billion in the comparable period of 2015 to N32.121 billion.

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Cash and balances with central banks rose to N638.242 billion from N630.185 billion, treasury bills grew from N354.028 billion to N441.882 billion, due from other banks dropped to N367.158 billion from N547.479 billion, loans and advances to customers improved from N1.902 trillion to N1.928 trillion, investment securities rose to N208.638 billion from N186.621 billion, other assets also rose, when it went up from N36.182 billion to N43.838 billion, while total assets rose to N3.992 trillion to N3.938 trillion.

Customers’ deposits dropped 4.42 per cent from N2.682trillion in the same period of 2015 to N2.563 trillion, other liabilities also dropped from N304.325 billion to N153.724 billion, borrowings rose to N237.527 billion from N204.399 billion, debt securities issued closed at N101.425 billion from N101.204 billion, while total liabilities for the period under review dropped to N3.371 trillion from N3.411 trillion.

In its 2015 financial result, the performance indices were impressive as profit after tax jumped by 6.2 per cent from N99.45 billion to N105.66 billion. Total asset rose by 6.7 per cent, from N3.67 trillion to N4.01 trillion in 2015, while customers’ deposits grew marginally by 0.8 per cent during the same period, from N2.54 trillion to N2.56 trillion.

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Shareholders fund grew by 7.5 per cent, from N552.64 billion in 2014 to N594.35 billion and gross earnings similarly grew by 7.2 per cent, from N403.34 billion in 2014 to N432.53 billion in 2015.

The Chairman of the bank, the Chairman of Zenith Bank, Mr. Jim Ovia however, said in the face of a very challenging operating environment, Zenith Bank has maintained its culture of outstanding performance and industry leadership.

“As a bank, we are monitoring developments both in the domestic and global economy and applying pragmatism and dynamism, as appropriate”, he said

Also speaking at the meeting, the managing director of Zenith Bank, Mr. Peter Amangbo added that the bank will continue to build a strong portfolio which is an important disposition for an effective and efficient model, saying this is expected to further impact business options in line with extant dynamics and influence prospects open to the bank.