Earnings Season: Zenith Bank Leading League Tables, GTBank In Close Second

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Nigeria’s leading financial institutions have begun disclosing their 2012 financial year end results in adherence to capital market regulations.

Zenith Bank and GTbank were the first industry-wide to release their reports on Tuesday. Profit After Tax was N100 billion and N87 billion respectively, placing Zenith Bank far ahead of the sector in terms of profitability.

Yesterday, Access Bank reported earnings of N38 billion and declared a dividend of N0.6k whilst Sterling recorded N6.9 billion and declared a dividend of N0.2 kobo. Ecobank Transnational Incorporated booked N45 billion, and declared a dividend of N62.

Here are some comments passed by the bank chiefs:

Segun Agbaje, Managing Director and CEO of Guaranty Trust Bank plc, attributed the Bank’s success to its “adherence to a defined growth plan, high corporate governance standards and the cultural values for which the Bank is known; innovation professionalism, integrity, discipline and service excellence“.

He further commented that these factors, coupled with a resourceful board and the passion of GTBank employees have enabled the Bank grow market share and continue to avail its stakeholders with value adding services.

Godwin Emefiele GMD/CEO said: “We are indeed delighted to note that amid the challenging business environment witnessed in 2012, notably the restrictive monetary policies and the double digit headline inflation rates, Zenith bank delivered yet another year of strong performance and consolidated our leadership in the Nigerian banking industry through the commitment and dedication of our workforce and enhanced operational efficiency. We recorded gross earnings of N307bn, up 26% from the previous year, grew PBT by over 51% to N102bn and doubled PAT to N101bn, our NIM also improved to 8.16% against the 7.76% achieved in 2011. Efficiency in our operations led to the significant improvement in our cost to income ratio to 54% down from 63% in 2011 as our cost curtailing measures ensured that our operational expenses were held in check at below 3% growth. Our sustained improvements of our Enterprise Risk Management culture saw our NPL levels fall to 3.15% one of the lowest in Nigerian banking, all the while maintaining our liquidity levels and adequate capital to support future expansion and cushion against business risks and contingencies.

In 2013, Zenith Bank will remain committed to rendering superior customer services and maintaining our competitive advantage in the market, and as an institution will continue to strengthen our processes to swiftly respond to changes and risks going forward.”

Thierry Tanoh, Group CEO said: “These very pleasing results reflect the successful integration of our two major acquisitions in Ghana and Nigeria, strong demand for retail banking services across our 33 country platform, increasing trade and commercial flows between Middle Africa and the rest of the world together with a strong performance of our dedicated staff.”

Tanoh concluded: “We are closely focused on delivering cost efficiencies, whilst maintaining high levels of service and innovation. Overall, we are confident that 2013 will be another year of progress as we further strengthen and develop the Group to the benefit of all our stakeholders.”

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