Zenith Bank Plc on Monday, April 18, announced a profit after tax of N26.573 billion for the first quarter ended March 31, 2016.
The result showed a decline of about four per cent compared to N27.680 billion recorded in the corresponding period of 2015.
The bank ended the period with gross earnings of N84.177 billion, up from N81.421 billion, while net interest income stood at N58.157 billion as against N42.631 billion in 2015. It recorded impairment charges of N2.557 billion, up from N2.1 billion in 2015.
Commenting on the Zenith Bank Q1 results, analysts at FBN Capital, said PAT declined more than PBT because Zenith Bank booked a significant positive result in other comprehensive income (OCI, N1.1billion) in Q1 2015.
“This year, the OCI line came in at just N147 million. Returning to profit before provisions, while net interest income grew strongly by 36 per cent to N58.2 billion, non-interest income fell 52 per cent to N15.3 billion. Relative to our forecasts, as aforementioned, both PBT and PAT surprised positively.”
The main drivers were better-than-expected results on the provisions and operational expenses (opex) lines, with variances of 41 per cent and 10 per cent respectively. Although net interest income actually beat our forecast by seven per cent, the weakness on the non-interest income line (32% below our forecast) proved significant,” the bank said.