Zenith Bank profits dip, execs praise resilience
Zenith Bank reported revenue of 3.4 trillion naira during the nine months ending in September, marking a 16 percent increase from the previous year’s figure of 2.9 trillion naira. Interest income climbed 41 percent to reach 2.7 trillion naira due to higher yields and expanded investment holdings, while the lender maintained a net interest margin of 12 percent despite rising funding costs. Non-interest revenue fell 38 percent to 535 billion naira as trading profits dropped 60 percent.
Pre-tax earnings declined to 917 billion naira from 1 trillion naira recorded during the same period last year after management took steps to strengthen loan quality. After-tax profit decreased 8 percent to 764 billion naira, bringing earnings per share down to 18.60 naira from 26.34 naira. Total assets expanded 4 percent to 31 trillion naira by September, supported by customer deposits that grew 8 percent to 23.7 trillion naira. Gross loans contracted 9 percent to 10 trillion naira while the ratio of problem loans improved to 3 percent following write-offs.
Group Managing Director Adaora Umeoji said the performance demonstrated disciplined execution and prudent risk controls amid economic headwinds. She expressed confidence about maintaining growth momentum through year-end while the bank pursues digital transformation initiatives.
