Zenith Bank Plc (ZENITHBANK)’s interest income rebounded strongly (+11.40% YoY) in Q2:2020, after suffering a 6.65% YoY decline in Q1:2020. This culminated in a 1.10% YoY growth in interest income to NG216.95bn in the first half of the year, backed by the bank’s considerable asset growth over the period. However, we note that the current low yield environment continues to weigh heavily on the bank’s performance as the growth in interest income failed to adequately reflect the growth in assets. Moreover, the pressure on fee-based income was compounded by the COVID-19 pandemic during the period as net fee and commission income declined by 39.97% YoY to NGN33.50bn.
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