ZENITH BANK POSTED PAT OF N193,424 Billion
- Gross Earnings: The bank experienced a drop of 15.41% in its top-line earnings for FY’18 to N630.34bn as against N745.18bn recorded 2017. The fall in Gross earnings was impacted by declines across major income lines - interest income 7%, trading gains 49%, and other operating income 20%.
- Credit Impairment Charges: The decline in impairment charges reflect prudent management of risk assets on the bank’s books, as the bank recorded a huge decline of 81.30% to N18.37bn at FY’18 (FY’17: N98.22bn). This feat could be attributed to the implementation of IFRS 9 which has placed more emphasis on adequate credit provisioning, thus putting the banks on high efficiency alert in management of risk asset.
- Interest Income/Expense: Both interest income and interest expense declined by 7.28% and 33.32% respectively in FY’18 due to the moderation in financial instruments’ yields during the year compared to prior year as the bank’s management adequately managed its interest expense line. A 61% dip in time deposits largely contributed to the fall in interest expense and this could be attributed to the highly competitive jostle for funds within the industry.
- Operating Expenses: The Bank recorded a marginal decline of 1.38% on its OPEX in FY 2018 having achieved some reduction in Information Technology, Insurance expense and Travel & Hotel which declined by 20.09%, 30.38% and 42.42% respectively. Read more