Zenith Bank Plc’s Gross Earnings up by 46.69% to close at N745.19 bn 2017

The management of Zenith Bank Plc released its Full Year  2017 results which showed that Gross earnings was higher by 46.69% during the year at N745.19 billion, also 55.14% higher than Bloomberg’s polled estimates, and 8.49% higher than analyst forecast.

The results also showed interest income (+23.42%) increased to N474.63 billion. The NIR also surged by 119.18% to N270.56 billion, owing to significant rise in trading income by 456.29%.

The bank’s total operating income for the year under review stood at 45.36% higher to close at N528.55 billion – 178.00% higher than polled expectation.

However, the loan impairment provisions follow others by surged by 203.64% to N98.23 billion – 83.40% higher than analyst forecast.

Also worth of note is the operating expenses which stood at 29.99% higher than the previous year of N226.86 billion, and 3.50% than analyst estimate of N219.20 billion.

The two major indicators of corporate organization activities are the Profit Before Tax stood at N203.46 billion and Profit After Tax of N177.93 billion, all surged by 29.80% and 37.24% higher than their respective figures in the previous year, and Bloomberg’s polled forecasts of N193.59 billion and N159.52 billion.

The significant upticks in trading income (+361.86% q/q and +535.34% y/y) and other income (+277.65% q/q, +207.59% y/y) during the quarter, muted the decline in fee and commission income (-42.52% q/q and -13.72% y/y), to drive growth in the NIR by +97.07% q/q and +251.45% y/y. 

The total opex was higher by 13.73 q/q and 67.38% y/y in the quarter.

The Board of Directors, proposed a final dividend of N2.45 per share which in addition to the N0.25 per share paid as interim dividend amounts to N2.70 per share (2016: Interim of N0.25 per share and final of N1.77 per share) from the retained earnings account as at December 31, 2017.

If the proposed dividend is approved by the shareholders, the Bank will be liable to pay additional corporate tax estimated at N21.08 billion representing the difference between the tax liability calculated at 30% of the dividend approved and the tax charge reported in the statement of profit or loss and other comprehensive income for the year ended December 31, 2017 equating to 7.90% yield on today’s price of N31.00.

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