Zenith Bank PLC reported second quarter unaudited group profit attributable to equity holders of the parent of 38.67 billion Nigerian naira, up from 34.59 billion naira a year earlier.
EPS for the period was 1.23 naira, compared to 1.21 naira in the second quarter of 2018.
Net interest income fell year over year to 56.38 billion naira from 56.77 billion naira, while net income on fees and commission increased to 34.50 billion naira from 25.87 billion naira. Trading gains amounted to 37.29 billion naira, up from the year-ago 35.10 billion naira.
The Lagos, Nigeria-based lender's impairment loss on financial and nonfinancial instruments reached 11.64 billion naira in the second quarter, compared to 4.41 billion naira a year earlier. Operating expenses fell on a yearly basis to 41.19 billion naira from 42.05 billion naira.
For the first half, the bank's attributable profit came in at 88.81 billion naira, up from 81.56 billion naira a year ago. EPS for the period was 2.83 naira, compared to 2.60 naira in the first half of 2018.
Zenith Bank plans to ramp up lending in the second half after its loan-to-deposit ratio failed to meet the Nigerian central bank's minimum target, the lender told Bloomberg News. The bank's loan book fell 3% to 1.95 trillion naira for the first half, while customer deposits rose by the same percentage to 3.8 trillion naira, pushing its loan-to-deposit ratio to 51.2% from 54.6% a year earlier, the news agency noted.
In July, the central bank told lenders to maintain a loan-to-deposit ratio of 60% by the end of September, warning that banks will face an additional cash reserve requirement charge if they fail to do so.
As of Aug. 19, US$1 was equivalent to 363.88 Nigerian naira.
