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Zenith Bank Posts Profit In Nigeria, Counts Losses In Sierra Leone

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Zenith Bank Nigeria has, Wednesday, announced a first half Profit Before Tax of N57.86 billion ($357.5 million), an 11 percent rise from N52.09 billion ($326 million) a year ago.

The bank, in a filing with the Nigerian Stock Exchange, stated that its gross earnings between the months of January-June 2014 stood at N184.4 billion ($1.14 billion) , 7.8 percent higher than the N171.0 billion of 2013.

But the leading African bank is suffering a contrast in fortunes in its Sierra Leonean subsidiary which posted a PBT loss of Le4.4 billion ($1 million) according to a report published by Sierra Leonean Newspaper Awoko in June.

Zenith Bank Sierra Leone moved from a 2012 PBT of Le227.8 million ($52,129) to a PBT loss of Le4.4 billion in 2013. The deposits from customers increased by 39 percent, from Le102.1 billion ($23.4 million) in 2012 to Le142.3 billion ($32.56 million) in 2013 but the fees and commission income dropped 2.7 percent from Le3.95 billion in 2012 to Le3.84 billion in 2013. The loans and advances to customers also dropped 17 percent from Le12.3 billion in 2012 to Le10.2 billion in 2013.

The Bank increased its investment in securities by 48.9 percent from Le57.8 billion in 2012 to Le86.1 billion in 2013 in an apparent move to counter its losses.

Zenith Bank Sierra Leone is however faced by more woes as it is said to be the first bank to have “not complied with the relevant provisions of the banking act of Sierra Leone.”

Awoko reports that “the auditors KPMG said in their notes to the financials that the bank’s unimpaired equity of Le19.4 billion fell below the minimum capital requirement of Le27 billion”, meaning that the bank may have to bring in nearly two million dollars (Le7.4 billion) to be able to meet the statutory minimum capital”.

Article Credit: Ventures-africa

Updated 5 Years ago

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Tags:     Zenith Bank Nigeria     Sierra Leone     Nigerian Stock Exchange     KPMG