ZENITH BANK’S PROFIT BEFORE TAX RISES BY 3% TO N58.7 BILLION IN Q1 2020


Zenith Bank Plc has announced its unaudited results for the first quarter ended
31st March 2020, with profit before tax rising by 3% to N58.7 billion.
According to the unaudited account which was presented to the Nigerian Stock
Exchange (NSE) on Wednesday 29th April 2020, the Group’s profit before tax
improved 3% from N57.3 billion in the prior-year period to N58.8 billion in March

  1. The increased profits benefited from the twin effects of continuing top-line
    growth and focused cost-of-funds optimisation. The Bank’s cost of funds declined
    significantly from 3.0% in March 2019 to 2.6% in the quarter, translating to a 10%
    decrease in interest expense dropping from N36.3 billion in March 2019 to N32.8
    billion in the quarter. Despite this drop, the low yield environment necessitated
    the repricing of interest-bearing assets which in turn resulted in a 13%
    compression in net interest margin, decreasing from 8.9% in March 2019 to 7.7%
    in the current period. 
    The Group also recorded a 6% increase in Gross Earnings from N158.1 billion in
    March 2019 to N166.8 billion for the period. This top-line growth was driven by
    the 43% expansion in non-interest income from N32.7 billion in the prior-year
    period to N46.6 billion in March 2020. 
    Zenith Bank has continued to gain customer acceptance with customer deposits
    increasing by 5% from N4.26 trillion in December 2019 to N4.46 trillion in the
    current period. The customer deposit mix rebalancing remains on-track as the
    Group added N150 billion in savings account balances in Q1 2020, supported by
    its retail drive. The Bank’s total assets increased by 12% growing from N6.35
    trillion in December 2019 to close at N7.13 trillion in the current period. In the
    quarter, gross loans grew by 11% from N2.46 trillion in December 2019 to N2.74
    trillion within the period. 
    Consistent with this performance and in recognition of its track record of excellent
    performances, Zenith Bank was voted as the Best Commercial Bank in Nigeria
    2019 by the World Finance and the Best Digital Bank in Nigeria 2019 by Agusto
    and Co. The Bank was also recognised as Bank of the Year and Best in Retail
    Banking at the 2019 BusinessDay Banks and Other Financial Institutions (BOFI)
    Awards. Recently, the Bank emerged as the Most Valuable Banking Brand in
    Nigeria, for the third consecutive year, in the Banker Magazine “Top 500 Banking
    Brands 2020″, Best Bank in Nigeria 2020 in the Global Finance World’s Best
    Banks Awards 2020, and Bank of the Decade (People’s Choice) at the ThisDay
    Awards 2020.

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