Zenith Bank Sets New Profitability Record, Posts N58 Billion Profit in 3 Months
Zenith Bank Plc, arguably Nigeria’s most profitable bank, has set a new profitability record in the Nigerian banking industry. The bank which has been coming tops in profitability ranking of the largest ten publicly-held companies in Nigeria, has posted a record profit of about N58 billion in three months (July-September, 2016), beating its closest rival, Guaranty Trust Bank Plc by N8.53 billion. Guaranty Trust Bank posted N49.46 billion profit in the same period.
All things being equal, Zenith Bank is also set to beat its own record as it looks good to surpassing its 2015 profit performance this year. The bank’s N100.07 profit after tax for the nine months up to September 30, 2016 is just N5.59 billion shy of its N105.66 billion 2015 full year performance. If the bank re-enacts its third quarter profitability feat in the fourth quarter of this year, it will be posting a PAT of about N160 billion at the end of the 2016 reporting year. The bottom line for the bank’s shareholders is a mouth-watering dividend, and nothing can be better than this in a period of recession.
The bank’s profit before tax (PBT) for the nine months up to September 30, 2016 which stood at N121.28 billion is N17.23 billion higher than its N104.05 billion PBT for the corresponding period of last year. This represents an appreciable increase of 16.56 per cent. Following the same pattern, its N100.07 billion profit after tax (PAT) for the nine months up to September 30, 2016 exceeds its N83.09 billion PAT for the corresponding period of 2015 by a princely N16.98 billion or 20.44 per cent.
Generally, Zenith Bank’s third quarter outing is simply impressive. The bank’s gross earnings jumped from N336.85 billion in September 2015 to N380.35 billion in September 2016, representing an increase of N43.5 billion or 12.91 per cent. In the same vein, its balance sheet size increased by 21.21 per cent, jumping from N3.84 trillion in 2015 to N4.65 trillion in September 2016.