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Wednesday, March 29, 2023

Zenith Bank H1 Profit Rises 2.2% as Higher Operating Expense Takes Toll

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Zenith Bank, Nigeria’s second largest lender by market capitalization has released half year (H1) results showing a sluggish 2.2 percent increase in after-tax profit.

The lender reported profit that rose to N106.1 billion for the H1 period, up slightly from N103.82 billion in H1, 2020.

The slow growth in profit was a result of lower interest income which came in at N203.9 billion for the period compared to N216.95 billion a year ago, as well as higher operating expenses.

Operating expenses rose by 17.9 percent in the period, reaching N97.57 billion, compared to N82.731 billion a year ago.

The major drivers of operating expense include Deposit insurance premium which rose by 16.8 percent to N8.07 billion, information technology up by 30 percent to N10.39 billion, AMCON levy which surged by 22.5 percent to N37.92 billion and Telephone and postages up 167 percent to N2.91 billion.

The Board of Directors of Zenith Bank, pursuant to the powers vested in it by the provisions of Section 426 of the Companies and Allied Matters Act of Nigeria, CAMA 2020, proposed an interim dividend of N0.30 per share from the retained earnings account as at 30 June, 2021.

Dividends are paid to shareholder’s net of withholding tax at the rate of 10 percent in compliance with extant tax laws.

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