Zenith Bank has released its first quarter (Q1) 2017 results which showed strong double-digit growth in profit before tax (PBT) (38% y/y) to N44 billion and profit after tax (PAT) (46% y/y) to N39 billion.
Both revenue lines contributed to the strong results as funding income grew by 21% y/y to N71 billion while non-interest income was up 94% y/y to N30 billion. The strong revenue contributions were material enough to more than offset a sizeable increase in loan loss provisions ( 206% y/y) and, to a lesser extent, opex growth of 24% y/y.
The growth in non-interest income stood out because Zenith’s trading income recovered from a loss of –N1.9 billion in Q1 2016 to a healthy positive result of N7 billion in Q1 2017.
Fees and commissions were also up strongly by a similar magnitude in naira terms. Compared with its Q4 2016 results, PBT grew by double-digits too, by 25% q/q and was partly helped by a -25% q/q reduction in loan loss provisions.
The PAT improved significantly (by 341% q/q) because the Q4 results had been weighed down by a marked negative result on the other comprehensive income line (-N21bn).