Insight Details
Zenith Bank Plc – Strong Performance from Core Operations Boosts Earnings
The recent Q1’18 audited accounts released by Zenith Bank Plc shows growth of 14.52% in its gross earnings as it increased to ₦169.19 billion (vs. ₦147.74 billion in Q1’17).
The growth was majorly triggered by the core operations of the company as the interest income increased by 20.77% to ₦142.62 billion in Q1’18 (vs. ₦118.09 billion in Q1’17). The growth in interest income was boosted by interest income from government securities as the company continue to benefit from high fixed income instruments. However, interest expenses reduced by 1.62% to ₦46.72 billion in Q1’18 from ₦47.489 billion reported in Q1’17.
As a result, net interest income increased to ₦95.90 billion in Q1’18 from ₦70.60 billion in Q1’17, representing an increase of 35.83%. The bank made a provision of ₦4.57 billion in Q1’18 (Q1’17: ₦7.89 billion) for impairment charge for credit loss.
Due to huge reduction in foreign exchange gain, total trading income reduced by 75.76% to ₦1.71 billion in Q1’18 from ₦7.06 billion reported in Q1’17.