ZENITH BANK: BRUISED BUT STILL STANDING

Zenith Bank PLC has apparently taken some punches from the tough times but it was still standing by half year to June 2016.

According to unaudited results released recently, the issue was not just that gross earnings eased by 6.2% to N214812m but that it held on and ended with a slight drop in margin to 29.5% from 31.5% previously.

Core business offered good succour because interest income grew by 2.94% to N181408m while interest expense decreased by 14.5% to N54385m.

It also helped greatly that Zenith depressed operating expenses by 6.82% to N43101m.

The stress came from 97.6% increase in impairment provision to N14232m; 16.2% drop in fee and commission income to N30701m; trading activities dive into N864m loss and 15.7% drop in other income to N3567m.

Share of profit from associates also dried up within the period while personnel cost rose by 9.35% to N34593m.

In the end, Zenith profit before tax dropped by 12.4% to N63281m.

Like for most Nigerian banks presently, the rest of the year needs some watching because of uncertainty over what the full foreign loan expense will be as the Naira continues to be under pressure.

ZENITH BANK:Nbn
             Half year
                 2016.        2015
G.Earnings 214.8.   229.1
Interest.     181.4.   176.2
Int. Cost       54.4.    63.6
Impairment 14.2.     7.20
Commission 30.7.   36.6
Trading  inc.(0.86).  12.0
Other inc.      3.57.    4.23
Personnel    34.6.    34.4
Op. Cost      43.1.     46.3
Profit b4 tax 63.3.    72.2
Margin %     29.5.     31.5

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