The Zenith Bank Group, despite the impacts of the global economic meltdown, has recorded gross revenue of N277.3 billion during its reporting period ended December 31, 2009, a jump of 31% over the N211.64billion it achieved the previous year.

This growth in revenue in a very challenging environment was due to the combined effect of a 40 per cent rise in interest income and 14 per cent of non-interest income between the two review periods. These sterling results which were released on the floor of the Nigerian Stock Exchange yesterday were achieved in a particularly difficult operating period characterized by high volatility in interest rates, weakening Naira against major currencies, crashing share prices and reduced activity. In achieving this feat, the Group leveraged on its strong liquidity, capital base and more efficient ICT enabled service delivery channels to increase its market share on all income lines.

During this reporting period, the Group made a profit before tax (PBT) of N35 billion; and has set aside N11.30 billion as dividend for its shareholders. It also proposes a bonus of one-for-four shares. This level of PBT, though lower than the previous year, is viewed by analysts as wonderful, in an industry that was synonymous with huge losses in 2009.

Equally impressive is the Capital Adequacy Ratio of the bank which stands at about 30%, three times the 10% regulatory minimum requirement under the Basel II framework and also above the industry average.

The shareholders’ fund of N337 billion unimpaired by losses, equity to total asset ratio of 20% and debt to equity ratio of 11% is a strong indication that the group has enough long term funding to support its business and other expansion plans. This strong capital base also provides regulators and all stakeholders a high level of comfort that the group is well placed to withstand any unexpected turbulence in the financial sector.

Also, the liquidity ratio stood at 60% which is more than double the 25% minimum regulatory requirement.

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