Business Hilights
Tracking Nigeria's Headline Business News Online

Why Zenith Bank’s half year report reflected strength @ N75.32bn PAT


…votes 25k interim dividend

Fresh details have emerged showing that the recently declared half year report of leading financial group, Zenith International Bank Plc which showed a profit after tax of N75.32 billion for the period ended June 30, 2017, is predicated on “Our strategy and approach to the pursuit of financial inclusion and sustainability gives us a lot of competitive advantage to explore even new frontiers in the market.” This was the pronouncement of the board chairman, Mr. Jim Ovia in an interview.

The bank also announced an interim dividend of N7.8 billion, which translated to 25k per share, same amount paid in the corresponding period of 2016.

The result released at the Nigerian Stock Exchange (NSE) on Thursday last week indicated that the profit-after-tax increased by 112.35 per cent when compared with N35.47 billion posted in the preceding period of 2016, while profit-before-tax rose to N92.18 billion, from N53.91 billion in 2016.

Business Hilights recalls that in March this year, Ovia, the bank’s Chairman, had assured the shareholders Zenith Bank would continue to reward them accordingly.

He explained that in line with its commitment to delivering superior returns to its shareholders, the bank ensured that a good chunk of the profit was set aside for shareholders, noting that Zenith Bank had maintained a culture of outstanding performance and industry leadership even in the face of a very challenging operating environment.

Ovia averred that “As a bank, we are monitoring developments both in the local and global economy and applying pragmatism and dynamism as appropriate.”

Additional details of the result showed that the profit came from gross earnings of N380.4 billion in 2017 as against N214.8 billion reported  in the comparative period of 2016, with Net interest income rising to N138.962 billion, compared to N127 billion in 2016, while impairment charges increased by 196 per cent from N14.2 billion to N42 billion.

Besides, the bank’s trading income, from foreign exchange, jumped from negative N864 million to positive N65.318 billion; as miscellaneous  operating income growing to N15.11 billion in 2017 from N3.75billion.