WorldStage Newsonline– Zenith Bank PLC, one of Nigeria’s leading banks on Thursday released its Interim Report for the period ended 30 June, 2020 with the group gross earnings increasing by 4.4%, profit before tax increased by 2.2% and profit attributable to the equity holders of the group at N103.735 billion a 16.81% growth from N88.806 billion in Q2 2019
According to the report http://www.nse.com.ng/Financial_NewsDocs/31365_ZENITH_BANK_PLC-_QUARTER_2_-_FINANCIAL_STATEMENT_FOR_2.pdf released at the Nigerian Stock Exchange (NSE), the board of directors have proposed an interim dividend of N9.4 billion being N0.30 per share, same as in 2019 from the retained earnings account as at 30 June, 2020.
The interim will be paid to shareholders whose names appear in the register of members as at the close of business on the 16th September, 2020. While the register will close on September 17, 2020, dividend to be paid electronically on September 22, 2020.
The bank said during the period, it opened six new branches and no branch was closed. As at 30 June, 2020 the group had 437 branches, 171 cash centers; 2,033 ATM terminals; 57,429 POS terminals and 9,011,254 cards issued to its customers. (31 December, 2019: 430 branches, 178 cash centers, 2,093 ATM terminals, 50,427 POS terminals and 7,745,176 cards issued).
On the impact of COVID-19, the bank said “owing to the novel Covid-19 pandemic, reduced demand in the oil market, and restricted international trade activities, the outlook of the nation’s Gross Domestic Product (GDP) had been expectedly negative. Nigeria’s Q1 GDP of 1.87% reveals that there are indeed challenges that cannot be ignored. Beyond the effect of the pandemic, the oil price wars driven by Saudi Arabia & Russia, have increased the level of uncertainty in the oil market.
“In its 2020 budget, the country had significantly cut the benchmark price to $25 per barrel without changing so much in terms of spending, making the nation susceptible to borrowing even more.
“The impact of the pandemic has not yet been reflected in Q2, 2020 results. This is because the economic impact of the pandemic actually commenced in April. The economic performance for Q2 and subsequent quarters in the year might not be too fantastic and there are visible reasons for this. Top on the list is that the non-oil economy will likely not offer the solace the economy needs. With the typical perils of increasing inflation as well as the continued closure of the border, growth may remain farfetched for the sector. Of course, restrictions in international trade and travel are set to worsen the said outlook. Given the forgoing, there is no gainsaying the fact that bigger challenges will ensue from the second into third quarter of the year.
“The economy is seen gaining some traction towards year end. In particular, increased credit provision to specific sectors of the economy through CBN interventions and other palliative measures by government to cushion the effects of the Covid-19 pandemic should lend support to consumer demand and the non-oil segment of the economy. However, the slow progress on structural reforms and oil price volatility pose key risks to the outlook.
“The Bank regularly assesses it’s resilience to changes in micro and macro environments with specific actions to address any observed or anticipated challenges.
“The Bank strongly believe it is well positioned to deal with liquidity risk and funding challenges that may arise from any adverse situations and our capital and earnings capacity (profitability) can withstand the shocks that may arise.
“Zenith Bank Plc will continue to support its customers as much as possible in terms of foreign exchange funding challenges; credit performance obligations (restructuring repayments to match cash-flows, where necessary)”
The Bank was incorporated in Nigeria under the Companies and Allied Matters Act as a private limited liability company on 30 May,1990. It was granted a banking licence in June 1990, to carry on the business of commercial banking and commenced business on June 16, 1990. The Bank was converted into a Public Limited Liability Company on 20 May 2004. The Bank’s shares were listed on the floor of the Nigerian Stock Exchange on 21 October 2004. In August 2015, the Bank was admitted into the premium Board of the Nigerian Stock Exchange.
The principal activity of the Bank is the provision of banking and other financial services to corporate and individual customers. Such services include obtaining deposits from the public, granting of loans and advances, corporate finance and money market activities.
The Bank has six subsidiary companies namely, Zenith Bank (Ghana) Limited, Zenith Pensions Custodian Limited, Zenith Bank (UK) Limited, Zenith Bank (Sierra Leone) Limited, Zenith Bank (The Gambia) Limited and Zenith Nominees Limited.
