Zenith Bank to Pay N9.42bn Interim Dividend, Records N89bn Half-year Profit

Shareholders of Zenith Bank Plc are to receive an interim dividend of 30 kobo per share for the half year ended June 30, 2019. The dividend, which amounts to N9.42 billion, will be paid out of the profit after tax (PAT) of N88.9 billion announced by the bank yesterday. Zenith Bank reported gross earnings of N331.6 billion, a marginal increase of 2.9 per cent compared with N322.2 billion in the corresponding period of 2018.

Net interest income fell from N154 billion to N142.5 billion, while credit impairment charges rose by 48.2 per cent from N9.3 billion to N13.7 billion. The bank ended the period with a profit before tax of N111.7 billion, up by four per cent compared with N107.4 billion, while PAT grew faster by 8.7 per cent to N88.9 billion, from N81.7 billion in 2018.

Commenting on the results, analysts at Cordros Capital Limited said the gross earnings recorded remained in line with their 2019 full year (FY-19) estimate and would settle 1.30 per cent lower based on the current run rate.

“The top-line growth was primarily supported by the 23.86 per cent expansion in non-interest income, which was boosted by net fees and commissions (+33.62 per cent) and trading gains (+22.53 per cent) income growth. The growth in non-interest income is outpacing our FY-19 estimate, which at the current run-rate would settle 5.40 per cent higher,” they said.

Cordros Capital noted that on the other hand, interest income declined by 6.15 per cent, driven by weak risk asset creation and declining yields on fixed-income securities.