Earnings Analysis 2013 9 Months: Zenith Bank Bests GTB YTD In Pre-Tax Profits

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Zenith Bank Plc released its 2013 9 Months results showing Gross Revenue rose 11% year on year to N255billion. Net interest income also rose 16% to N139billion year on year. Operating profit for the period was N80billion compared to N59billion a year earlier. Pre-tax profit at the end of the period was N83billion a 32% rise from the N51.5billion it posted a year earlier.

Quarter on Quarter[upme_private]

Key Highlights

• The banks Net Interest Income not only topped the previous 9 months but also did better in terms of margins.
• Net Interest income also rose highest this quarter and for the third straight consecutive quarter. The bank has lent aggressively this year increasing loan 12% to N1.1trillion. 
• Commission and fees also rose 50% to N36.4billion despite the strict CBN regulations instructing banks to reduce C.O.T’s
• The bank has now written off N6billion (4.3% of interest income) and two-thirds of last years total of about N9billion. It is a worrying sign that things could get a lot worse at the end of the financial year.
• This result tops GTB’s pre-tax profits for the second time this year after besting the Orange bank in Q1 and Q3 respectively.
• Zenith Bank shares dipped 0.23% to N21.7 at the close of trading Friday October 25th. However, the stock is still trading well above its One month low of N19.9

Zenith Bank released its 2013 9 Months result in the website of the NSE [/upme_private]