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Q1 2012 Earnings: Zenith Banks N 19.2 billion PAT, Holds N 1.67 trillion in Deposits

By on May 3, 2012

Zenith bank released its first quarter financial statements today. The top-tier bank made N 72.4 billion in Gross Earnings between January and March this year, up 33% from the N 54.3 billion it made at the end of March 2011.

The bank’s provision for doubtful debts reduced 69% to N 1.2 billion from N 4 billion at the end of Q1, 2011, reflecting vast improvement in credit management.

Profit before tax improved by 25% to N 23 billion from N 18.35 billion over the similar quarter in 2011.

Net income was also up 26% to N19.2 billion from N 15.2 billion at the end of Q1, 2011.

Godwin Emefiele, Managing Director and Chief Executive Officer of Zenith Bank Plc, while commenting on the results, he ascribed the bank’s continued superior performance to a well motivated staff force, sustained investment in technology and focus on customer reach and service delivery excellence.

According to Mr. Emefiele, “Over the past year we experienced a significant increase in funding cost as average MPR and Money market rates increased 80% through monetary tightening. Despite this headwind we are pleased to have maintained a strong net interest margin through low cost deposit mobilisation and highly efficient balance management. These combined with a drop in our cost of risk to lower and stable levels produced a healthy26% year on year growth in profit after tax signaling a strong return on equity for shareholders that came in above our expectations. The outlook for the remainder of the year is positive as we expect to sustain the trend in income growth on the back of continued optimal resource allocation and cost efficiencies. However, in view of the fragile global economic environment we continue to maintain a shock proof balance sheet with liquidity and capital adequacy levels well in excess of the minimum statutory requirement.