Zenith Bank Grows 2018 Profit To N232bn, N2.80 Dividend Excites Shareholders
The share price of Zenith Bank Plc yesterday gained N1.35 each or 5.83 per cent to close at N25.35 each, in apparent investor approval of the 2018 audited result for the year ended December 31, 2018, presented by the board.
The bank also emerged as one of the most sought after during the day’s trading, after investors took position, scooping 37,342,076 units worth N925,541,144.50 in 691 deals.
The bank therefore, became the first in its sector to present its audited financials for the year ended December 31, 2018 to the Nigerian Stock Exchange (NSE), a major highlight of which was the N231.685 billion profit before tax. The PBT growth represented N32.295 billion or 16.2 per cent over the N199.319 billion reported in the corresponding full year of 2017.
A major highlight of the results was that management significantly reduced impairment loss on financial and non-financial instruments by N79.855 billion or 81.3 per cent from N98.227 billion to N18.372 billion.
Gross earnings for the period stood at N630.344 billion despite tightness of the operating environment just as management successfully constrained the interest and similar expenses from N216.637 billion to N144.458 billion. Net interest income therefore stood at N295.594 billion, as against prior year’s N257.991 billion.
Net interest income after impairment loss on financial and non-financial instruments stood at N277.222 billion, as against N159.764 billion in 2017.
Operating expenses dropped to N137.897 billion from N144893 billion, even as personnel expenses rose to N68.556 billion from N64.459 billion.
Profit after tax for the period improved by N19.633bn or 11.29 per cent from N173.791 billion in 2017 to N193.424 billion, representing earnings per share of N6.15, up from N5.53 each reported in the corresponding period of 2017. The directors have proposed a final dividend of N2.50, which brings total payout to N2.80 considering the 30 kobo interim dividend distributed at half year.
Total Assets for the period under review increased by N360.457 billion or 6.44 per cent from N5.595 trillion in 2017 full year to N6.955 trillion with customer loans and advance of N1.823 trillion as against the previous N2.1 trillion.
– INDEPENDENT
