2014 Q1 Results: Zenith Bank Post Zero Growth On Earnings…Expenses Remain High

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Zenith Bank Plc released its 2014 Q1 results showing Gross Earnings rose 8.4% to N94.3billion compared to N86.9billion posted same period last year. See details;

• Net Interest Income was basically flat at N45.5billion (2013 Q1: N35.6billion) as higher interest expense sliced off about 37% of Interest income for the quarter
• However, the Net interest income of N45.5billion was about N8billion higher than the three months preceding this quarter (ending December 2013)
• Income from commission and fees rose 17% to N14.3billion compared to N12.5billion. year earlier
• Operating expenses was also high as it rose 10% to N37.5billion this quarter compared to N33.9billion a year ago though last year’s result appeared to have been revised
• Pre-tax profits ended up basically flat at N28.9billion (2013 Q1: N28.8billion) following increasing operating expenses
• Cost to income ratio by our estimates was about 55%, compared to 53% same time last year.
• Zenith Bank also managed to increase its loans by 4.7%, however its loan to deposit ratio at 57% compared to GTB which has about 69%
• It appears the restriction on public sector deposits continues to pile pressure on cost of funds slicing income from areas where the bank used to profit from.