ZENITH BANK EARNS N55BN IN THREE MONTHS
Zenith Bank Nigeria Plc has announced gross earnings of N55 billion for the three months ending March 2010, representing a 5 per cent increase over the figure for the same period last year.
The bank’s unaudited results for the first quarter of the new financial year released in Lagos earlier in the week, showed a 12 per cent increase in profit before tax from N11.8bn in March 2009 to 13.2bn in March 2010.
Observers who spoke on the Q1 performance after it was announced on the floor of the Nigerian Stock Exchange said it was is no doubt a good start for the group in sustaining the shareholders and investors confidence.
Detailed analysis of the results showed a robust asset position of N1.8 trillion representing a 9% increase from December 2009.
With a capital adequacy of 28% (Bank: 34%), (almost three times the 10% regulatory minimum requirement) and liquidity ratio of 48% (Bank: 59%), (almost two times the 25% minimum required by regulation), analyst believe that Zenith’s balance sheet is strong enough to propel its planned expansionary activities and also to withstand any adverse event.
Zenith Bank is believed to have benefited from attracting low cost deposits through expansion of retail branch network while deployment of ICT channels for efficient service delivery remains the strategic focus of the group.
(Posted 26th April, 2010)