Zenith Bank Posts N105.7bn Profit, Ecobank Gives Profit Warning

Zenith Bank Posts N105.7bn Profit, Ecobank Gives Profit Warning
Oladejo Amos
Zenith Bank on Tuesday declared a profit after tax of N105.7 billion for the financial year ended December 31, 2015, an increase of 6.2 per cent when compared to N99.5 billion recorded in the same period of 2014.
The bank’s grossed N432.5 billion in the review period, from N403.3 billion recorded in the corresponding period of 2014.
According to the result presented to the Nigerian Stock Exchange, profit after tax margin ratio dropped to 24.4 per cent, from 24.66 per cent in 2014, while cost to income ration stood at 54.3 per cent, from 55.2 per cent.
Further analysis of the result showed that taxation reduced to N19.9 billion in 2015, from N20.3 billion in 2014, while customer deposits rose marginally by 0.8 per cent to N2.56trillion, from 2.54 trillion recorded the preceding year.
However, Ecobank Transnational Incorporation, on Tuesday, said full-year revenue growth will be lower than expected after lower oil prices and weaker currencies hurt economies across the continent.
The bank said there were also higher impairment charges in the fourth quarter, which will result in full-year profit for 2015 being lower than earnings in the first nine months of the year in dollar terms.
The bank’s share dropped five per cent to N17.11 on the Nigerian Stock Exchange, its biggest decline in almost three months.
It said on October 27, 2015 that profit declined to $305.7 million in the nine months through September, compared with $322.1 million in the year earlier period.