Lower impairment provision lifts Zenith Bank performance as PBT grows 38% in 2018

Peter Amangbo, GMD/CEO, Zenith Bank

By FELIX OLOYEDE

Zenith Bank performance beat analysts’ expectations as it is profit-before-tax grew 38 per cent year-on-year to N231.7 billion in 2018 and declared a final dividend of N2.50 per share.

The commercial lender’s performance was buoyed by the significant cut it made in operating expenses and provisions, which shrank -17 per cent and -92 per cent respectively last year.

This was despite its gross earnings dropping -15.41 per cent to N630.34 billion, weakened by -7.28 per cent decline in interest income, net fee and commission fee also slipping -0.89 per cent as well as trading income almost halved, declining -49.23 per cent.

Expectedly, Zenith Bank lowered its risk appetite in 2018, reducing its loans and advances by -13.20 per cent to N1.82 trillion during this period.

The bank, however, was able to rake in more cheap funds as customers’ deposits increased 7.34 per cent and its total assets was up 6.44 per cent to N5.96 trillion.

Its total liabilities raced up 7.46 per cent to N5.14 trillion.