Quarter 1 unedited reports of Zenith Banks quarter reveal a Profit Before Tax (PBT) rising by 4% to N61.0 billion, from N58.8 billion recorded in March 2020.
The unaudited statement of account presented to the Nigerian Stock Exchange (NSE )on Friday, 30th April 2021, Profit After Tax (PAT) also grew by 5% from N50.5 billion in Q1 2020 toN53.1 billion in Q1 2021.
The optimisation of the cost of funds and improvement in non-interest income helped to improve the bottom-line and profitability The Bank’s cost of funds reduced significantly from 2.6% in March 2020 to 1.1% in March 2021.
This also reflected in interest expense which dropped by 45% from N32.8 billion toN18.0 billion over the same period while the Non-interest income increased by 10% from N46.6 billion to N51.2 billion.
The growth which was as a result of credit-related fees and fees on electronic products.
Thus we see increased volume of transactions across all the Bank’s channels. Cost of risk dropped from 0.6% in March 2020 to 0.5% in March 2021, which affirms the Bank’s prudent risk management, even as gross loans increased by 2% from N2.92 trillion to N2.98 trillion in Q1 2021.
The Bank’s robust customer acquisition strategy and the effectiveness of its electronic platforms and digital channels enabled it to deliver a N54 billion increment in the savings account balance, which is solely retail. Customer deposits grew by 6% from N5.34 trillion in December 2020 to N5.68trillion in March 2021.
Electronic Banking channels too grew astoundingly as new customers continue to sign on to the Bank’s various user-friendly digital platforms.
The Bank expects that the ongoing economic recovery and improvements will yield user friendly platforms and environment that will be seen to translate into improved numbers for the Group.