Zenith Bank Plc has reported a profit after tax (PAT) of N47.079 billion for the first quarter ended March 31, 2018, showing an increase of 26 per cent from N37.449 billion recorded in the corresponding period of 2017.
The financial results released yesterday showed gross earnings of N169.192 billion, indicating a growth of 14 per cent from N147.736 billion in 2017.Net income increased by 35 per cent from N70.604 billion to N95.898 billion in 2018.
Fee and commission income reduced from N21.128 billion to N20.837 billion. In a bid to reduce cost, personnel fell from N18.166 billion in 2017 to N15.566 billion. However, operations expenses rose from N26.991 billion to N43.917 billion. Impairment charges fell by 42 per cent from N7.886 billion to N4.573 billion.
Consequently, profit before tax rose by 22 per cent from N44.2 billion to N54 billion, while PAT grew faster by 26 per cent from N37.449 billion to N47.079 billion in 2018. Market analysts said with the improved profit, shareholders would receive higher dividend if the performance is sustained throughout the year.
Zenith Bank Plc of the bank last week approved the proposal of the board to pay a final dividend of N2.45 per share for 2017. In all, the shareholders received a total dividend of N2.70 per share for the year.
Speaking at the annual general meeting (AGM) in event, the Chairman of the bank, Mr. Jim Ovia, said despite the challenging operating environment, the bank was able to achieve improved performance in its financial results in 2017.
He said profit before tax rose by 24 per cent from N140bn in 2016 to N174bn in 2017, while total assets of the bank grew by 13 per cent from N4.28tn in 2016 to N4.83tn in 2017.
â€œThis translated into an excellent performance that stands as a testament to the durability and resilience of the brand. Clearly, the results are once again a reflection of the exceptional financial health of the bank and the group,â€ he said.
Speaking in the same, the Group Managing Director, Zenith Bank Plc, Mr. Peter Amangbo, said the management of the bank had made progress in its vision to entrench sustainability in its operations.
He had said the management of the bank would increase the quality of its engagement and be more proactive by anticipating fluctuations in the economy and markets.