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Zenith Bank Records N100bn Profit After Tax



Zenith Bank
  • Zenith Bank Records N100bn Profit After Tax

Zenith Bank Plc has posted N100bn profit after tax for the nine months ended September 30, 2016, which represents a growth of 20.4 per cent compared to N83bn recorded for the same period in 2015.

The bank ended the period with a profit before tax of N121.2bn, showing an increase of 16.6 per cent above the N104bn posted in the corresponding period of 2015.

The results showed improvements in performance indicators, as gross earnings rose by 12.9 per cent from N337.9bn to N380.4bn, while net interest income grew by 17.6 per cent from N161.4bn to N189.8bn.

Impairment charges rose by 124.8 per cent to N9.7bn to N21.9bn, while other income soared from N9.7bn in 2015 to N32bn in 2016.

The financial institution, in a statement on Monday, said despite the macroeconomic headwinds,   it attracted more deposits and also gave out more loans and advances. Depots rose from N2.557tn to N2.692tn, while loans and advances grew from N1.841tn to N2.425tn.

The bank’s total assets hit N4.654tn, up by 16.2 per cent from N4tn in 2015.

Market operators, according to the bank, had commended the performance, adding that with this, shareholders of Zenith Bank should prepare for a bountiful harvest at the end of year.

Already, the bank had paid an interim dividend of 25 kobo to the shareholders for the half year ended June 30, 2016.

Reacting to the results, analysts at FBN Quest said  given the nine month profit before tax of N121bn, the N123bn made by the management for the full year would be surpassed.

The analysts said, “On the back of these results, we will expect consensus PBT for 2016 to move up strongly, from N123bn currently, given that the nine months  result is N121bn. The operating expenses and interest expense figures are disappointing and will draw some scrutiny from the market.

“However, we expect the fx-related gains to more than compensate for these, given their magnitude and the fact that it was the absence of such gains in the second quarter (especially on the non-interest income line) that led to a muted negative reaction by the market.”

Assessing the third quarter performance, FBN Quest said the  PBT of N58bn  grew 82 per cent while PAT grew much faster, by 151 per cent  to N83bn, owing to a significant result on the other comprehensive income line (boosted by foreign exchange translation gains).

They added, “The main driver behind the strong growth in the PBT was non-interest income of N61bn, which increased by 125 per cent. This performance compares with a 29 per cent growth in net interest income. As a result, although both loan loss provisions and operating expenditure saw marked increases of 202 per cent and 40 per cent,  respectively, the strong revenue growth more than offset these trends, leading to the 82 per cent PBT growth.

“Sequentially, the non-interest income line stood out again, with a 239 per cent quarter to quarter increase. Unlike the Q2 when non-interest income disappointed because forex revaluation gains were largely absent, in the Q3, the gains were very visible at N28bn, slightly over 45 per cent  of the total other-income result.”


Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Banking Sector

CBN Extends Letter of Credit Issuance Timeline Amid Forex Crisis

Move Aims to Address FX Scarcity Challenges and Enhance Customer Service



Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) has announced an extension of the timeline for issuing letters of credit from 24 hours to five working days, according to the newly approved 2023 service charter.

This adjustment comes as the country grapples with foreign exchange scarcity, impacting local and international trade.

The 2020 service charter initially stipulated a 24-hour timeline for the issuance and management of letters of credit, but the updated charter now reflects a timeline extension to five working days.

Also, the CBN has prolonged the timeline for the registration of Form M and NXP from 24 hours to two working days.

The move follows the CBN’s unification of all forex market segments in June 2023, aimed at promoting liquidity and stability.

However, this measure appears to have led to increased market instability, with the naira losing nearly a fifth of its value.

Reports indicate that foreign suppliers are now rejecting letters of credit from Nigerian businesses, affecting the importation of goods and services.

Letters of credit are crucial for the payment of visible goods imports, wherein a bank commits in writing to pay the exporter a specified sum within a defined timeframe upon receipt of proper documentation from the customer.

The extended timelines for letters of credit, Forms M, and NXP in the service charter are seen as measures to manage cash flow and instill confidence in the process amidst the ongoing forex crisis.

CBN Governor Yemi Cardoso stressed the commitment to responsive and citizen-friendly governance through efficient, responsible, and transparent service delivery in the revised service charter.

The move is part of the CBN’s effort to comply with the Business Facilitation Act 2022 and enhance ease of doing business in Nigeria.

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Banking Sector

Unity Bank MD Advocates Policy Actions to Stem Gender-Based Violence in Nigeria



The Managing Director of Unity Bank Plc, Mrs. Tomi Somefun has called for comprehensive policy actions that will dismantle the structures that enable gender-based violence in Nigeria.

At the Ebony Life Cinema, the venue of the film screening in Lagos, Unity Bank supported the BECKMA movie premiere by ARDA Development Commuications Inc. which was held to highlight issues of Gender-Based violence and driving positive change in society.

Making the call, Somefun stated that the Bank committed to partnering with the movie premiere and putting the power of the brand behind BECKMA as the event brings sustainability and gender equality to the front burner.

Represented by Unity Bank’s Group Head of Compliance, Mrs. Patricia Ahunanya, Somefun noted that “9 percent of women aged 15 to 49 had suffered sexual assault at least once in their lifetime and 31% had experienced physical violence,” citing a recent study by UNDP in Nigeria.

Speaking further, Somefun said “Gender-based violence is not just a women’s issue, but a societal ill that demands our collective attention. It is high time for us to step forward and advocate for comprehensive policy actions that will dismantle the structures allowing such atrocities to persist”.

She added, “I urge policymakers to enact stringent laws against gender-based violence, ensuring swift and severe consequences for perpetrators. Our homes and various organisations must also be a catalyst for change, inspiring others to follow suit.”

While commending the ARDA Development Communications Inc. for their initiatives to promote gender equality and empowerment in line with SDG5, Somefun assured of the Bank’s commitment to sustainable initiatives and further collaborative initiatives and advocacy programmes for the elimination of gender-based violence.

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Banking Sector

Nigeria’s NIBSS Directs Banks to Disconnect Non-Deposit Financial Institutions from NIP System



Central Bank headquarters

Banks in Nigeria have received a directive from the Nigeria Inter-Bank Settlement System (NIBSS) to disconnect Switches, Payment Solution Service Providers (PSSPs), and Super Agents from the NIBSS Instant Payment Outwards System.

The circular, dated December 5, 2023, highlighted that including these non-deposit-taking financial institutions as beneficiaries on the NIP funds transfer channels violates the Central Bank of Nigeria (CBN) guideline on electronic payments.

The NIBSS emphasized that while Switches, PSSPs, and Super Agents might process outward transfers as inflows to banks, their licenses do not permit them to hold customers’ funds.

The circular referred to the CBN’s guidelines on electronic payment of salaries, pensions, suppliers, and taxes, dated February 2014, as the basis for this regulatory stance.

The directive also pointed to a circular dated May 11, 2018, titled “Permissible Services and Products of PSSP Operation in Nigeria,” reinforcing the need for compliance.

As a result, banks were urged to delist all Switches, PSSPs, and Super Agents from the NIP Outward Transfer channels while allowing their participation in inward transfers.

In Nigeria’s payment ecosystem, operators are required to obtain licenses such as Switching and Processing, Mobile Money Operations, Payment Solution Services, or Regulatory Sandbox from the CBN.

Only Mobile Money Operators (MMOs) have the authority to hold customer funds, according to the CBN’s regulatory framework.

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