Zenith Bank Profit Hits N50Bn

Zenith Bank Plc has declared a profit before tax of N50.28 billion for the financial year ended June 30, 2008, showing an impressive 96 per cent jump over the N25.67 billion recorded last year.

The bank’s full year result, released on the floor of the Nigerian Stock Exchange (NSE) also showed gross earnings rising by 67 per cent from N 94.88 billion to N158.29 billion.

The result showed, is profit after tax, which jumped by 119 per cent from the N18.77 billion recorded last year to N41.04 billion.

Zenith Bank’s result confirmed it as a leading Nigerian, technology-driven, global financial institution, providing distinctively unique range of financial services.

It also enhances Zenith Bank’s reputation as a market leader especially with regards to return on investment. "This outstanding result again shows the ability of the Zenith Brand to sustain its place as the foremost bank in the country," one analyst said.

The Bank’s Initial Public offering in 2004, has begun to yield fruits as shareholders have received a return of 322%, including the bonus issues and dividend payout within the period.

Zenith Bank has maintained one of the best asset qualities in the banking industry as evident in the low ratio of non-performing loans to total loans of 1.8 per cent as at 30 June, 2007 compared to the industry average of about 8 per cent.

The operating results of the bank in the last five years indicate an impressive performance on all parameters. Total assets plus contingents grew by 730.06% from N153.44 billion as at the end of June 2003 to N1.271 trillion in June 2007. Within the same period, gross earnings increased from N17.8 billion to N94.9 billion, representing a 433.14% growth while profit before tax also grew by 372.42% from N5.44 billion to N25.7 billion.

Profit after tax for same period rose by 327.27% from N4.42 billion to N18.8 billion. Also impressive were the remarkable growth in shareholders funds from N12.651 billion to N114.6 billion, indicating an increase of 823.81% and total deposit from N61.5 billion to N634.5 billion representing a 931.54% jump.

The impressive growth pattern and performance over the years have earned Zenith Bank excellent ratings from local and international agencies. Fitch currently rates Zenith Bank AA- (National) while Agusto & Co., Nigeria’s foremost rating agency, has for ninth consecutive years rated Zenith Bank Triple Aaa saying ‘’…the bank is a financial institution of impeccable financial condition and overwhelming capacity to meet obligations as and when they fall due’’.