ZENITH BANK PLC CONSOLIDATED AND SEPARATE …

1 ZENITH BANK PLCCONSOLIDATED AND SEPARATE INTERIM financial STATEMENTSFOR THE PERIOD ENDED MARCH 31, 2018 ZENITH Bank PlcConsolidated And SEPARATE Interim financial Statements for the period ended March 31, 2018 Index IndexPageCertification pursuant to section 60(2) of Investment and Securities Act of 20072 Statements of profit or loss and other comprehensive income3 - 4 Statements of financial position5 - 6 Statements of cash flows7 - 8 Statements of changes in equity9 - 10 Notes to the CONSOLIDATED and SEPARATE interim financial statements11 - 38 Supplementary Information391 ZENITH Bank PlcConsolidated And SEPARATE Interim financial Statements for the period ended March 31, 2018 Certification pursuant to section 60(2) of Investment and Securities Act Of 2007We the undersigned hereby certify the following with regards to our financial report for the period ended 31 March 2018 that: (a) We have reviewed the report;(b) To the best of our knowledge, the report does not contain:(i) Any untrue statement of a material fact, or(ii) Omit to state a material fact, which would make the statements misleading in the light of the circumstances under whichsuch statements were made;(c) To the best of our knowledge, the financial statement and other financial Information included in the report fairly present inall material respects the financial condition and results of operation of the company as of, and the periods presented in thereport.

2 (d) We:(i) Are responsible for establishing and maintaining internal controls;(ii) Have designed such internal controls to ensure that material information relating to the company and its consolidatedsubsidiary is made known to such officers by others within those entities particularly during the period in which the periodicreports are being prepared;(iii) Have evaluated the effectiveness of the company's internal controls as of date within 90 days prior to the reports;(iv) Have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation asof that date;(e) We have disclosed to the auditors of the company and audit committee:(i) All significant deficiencies in the design or operation of internal controls which would adversely affect the company'sability to record, process, summarize and report financial data and have identified for the company's auditors any materialweakness in internal controls, and(ii) Any fraud, whether or not material, that involve management or other employees who have significant role in thecompany's internal controls.

3 (f) We have identified in the report whether or not there were significant changes in the internal controls or other factors thatcould significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regardsto significant deficiencies and material weaknesses .Peter AmangboGroup Managing Director/CEOFRC/2013/ICAN/00000001310 Ebenezer OnyeagwuDeputy Managing DirectorFRC/2013/ICAN/000000037882 ZENITH Bank PlcConsolidated And SEPARATE Interim financial Statements for the period ended March 31, 2018 Statements of profit or loss and other comprehensive incomeGroupBank3 Months3 Months12 Months3 Months3 Months12 Months31-Mar-1831-Mar-1731-Dec-1731-Mar- 1831-Mar-1731-Dec-17In millions of NairaNotesGross earnings169,192147,736745,189146,496130, 059673,636 Interest and similar income14142,618118,092474,628125,645105, 144420,210 Interest and similar expense15(46,720)(47,488)(216,637)(42,32 8)(43,666)(200,672)Net interest income95,89870,604257,99183,31761,478219 ,538 Impairment charge for credit loss16(4,573)(7,886)(98,227)(2,400)(7,30 0)

4 (95,244)Net interest income after impairment charge for credit losses91,32562,718159,76480,91754,178124 ,294 Fee and Commission income1720,83721,12890,14415,31817,30072 ,847 Trading income181,7127,064157,9731,7127,051157,9 73 Other income194,0251,45222,4443,82156422,606 Amortisation of intangible assets35(526)(282)(1,631)(475)(232)(1,43 1)Depreciation of property and equipment34(3,889)(2,723)(12,428)(3,421) (2,492)(11,059)Personnel expenses(15,566)(18,166)(64,459)(12,907) (16,239)(55,672)Operating expenses20(43,917)(26,991)(148,346)(40,1 94)(23,205)(135,995)Profit before tax54,00144,200203,46144,77136,925173,56 3 Income tax expense21(6,922)(6,701)(25,528)(4,500)(4 ,500)(16,418)Profit after tax47,07937,499177,93340,27132,425157,14 5 Other comprehensive income:Items that will never be reclassified to profit or lossFair value movements on equity instruments1,250957(2,551)1,250957(2,551 )Items that are or may be reclassified to profit or lossForeign currency translation differences3,5325095,233---Other comprehensive income for the period4,7821,4662,6821,250957(2,551)Tota l comprehensive income for the period51,86138,965180,61541,52133,382154 ,5943 ZENITH Bank PlcConsolidated And SEPARATE Interim financial Statements for the period ended March 31, 2018 Statements of profit or loss and other comprehensive incomeGroupBank3 Months3 Months12 Months3 Months3 Months12 Months31-Mar-1831-Mar-1731-Dec-1731-Mar- 1831-Mar-1731-Dec-17In millions of NairaNotesProfit attributable to.

5 Equity holders of the parent47,00637,446177,60440,27132,425157 ,145 Non-controlling interests7353329---Total comprehensive income attributable to:Equity holders of the parent51,73938,926180,28141,52133,382154 ,594 Non-controlling interests12239334---Earnings per share attributable to equity holders of parentBasic and dilutedk150k119k566k128k103k5014 ZENITH Bank PlcConsolidated And SEPARATE Interim financial Statements for the period ended March 31, 2018 Statements of financial position as at March 31, 2018 GroupBankIn millions of NairaNote(s)31-Mar-1831-Mar-1731-Dec-173 1-Mar-1831-Mar-1731-Dec-17 AssetsCash and balances with central banks22940,981604,419957,663891,926565,4 19907,265 Treasury bills23986,571646,387936,817751,983468,4 98799,992 Asset pledged as collateral24445,896338,996468,010445,896 338,996468,010 Due from other banks25760,510389,541495,803547,342325,5 98273,331 Derivative assets2665,81419,51957,21965,81419,51957 ,219 Loans and advances271,757,0112,349,4702,100,3621,6 68,1142,124,1991,980,464 Investment securities28419,808221,967330,951174,389 129,619117,814 Investments in subsidiaries29---34,00333,00334,003 Deferred tax assets329,2536,6389,5619,1976,0419,197 Other assets33138,63449,11992,49498,72648,8945 6,052 Property and equipment34137,441105,768133,384121,4739 3,576118.

6 223 Intangible assets3513,8858,00412,98912,9017,40512,0 88 Total assets5,675,8044,739,8285,595,2534,821,7 644,160,7674,833,658 LiabilitiesCustomers' deposits363,396,1822,996,2623,437,9152,6 81,1682,441,2462,744,525 Derivative liabilities317,1482,02720,8057,1482,0272 0,805 Current income tax2113,62513,5788,91510,56911,4276,069 Deferred tax liabilities32-4618---Other liabilities37328,286227,372233,481309,41 5265,881219,791On-lending facilities38443,440360,213383,034443,440 360,213383,034 Borrowings39408,140296,041356,496408,140 329,379418,979 Debt securities issued40343,737156,431332,931343,737156, 431332,931 Total liabilities4,940,5584,051,9704,773,5954, 203,6173,566,6044,126,1345 ZENITH Bank PlcConsolidated And SEPARATE Interim financial Statements for the period ended March 31, 2018 Statement of financial Position as at March 31, 2018 GroupBankIn of NairaNote(s)

7 201820172017201820172017 Capital and reservesShare capital4115,69815,69815,69815,69815,6981 5,698 Share premium42255,047255,047255,047255,047255 ,047255,047 Retained earnings268,592244,019365,757200,119190, 497296,786 Other reserves194,612172,072183,839147,283132, 921139,993 Attributable to equity holder of the parent733,949686,836820,341618,147594,16 3707,524 Non-controlling interests1,2971,0221,317---Total shareholders' equity735,246687,858821,658618,147594,16 3707,524 Total liabilities and equity5,675,8044,739,8285,595,2534,821,7 644,160,7674,833,6586 ZENITH Bank PlcConsolidated And SEPARATE Interim financial Statements for the period ended March 31, 2018 Statements of cash flowsGroupBankIn millions of NairaNote(s)31-Mar-1831-Mar-1731-Dec-173 1-Mar-1831-Mar-1731-Dec-17 Cash flows from operating activitiesProfit after tax for the year47,07937,499177,93340,27132,425157,1 45 Adjustments for non-cash items.

8 ImpairmentImpairment loss on overdraft164,1477,61031,3052,4007,30030, 748 Impairment loss on term loan42627665,905--63,502 Impairment loss on on-lending--925--925 Impairment loss on leases--92--69 Fair value changes in trading bond-(34)--(21)-Depreciation of property and equipment3,8892,72312,4283,4212,49211,05 9 Amortisation of intangible assets5262821,6314752321,431 Dividend income--(900)--(4,500)Interest and similar income(142,618)(118,092)(474,628)(125,64 5)(105,144)(420,210)Interest and similar expense46,72047,488216,63742,32843,66620 0,672 Profit on sale of property and equipment19(122)(27)(57)(122)(27)(22)Gai n on disposal of subsidiary and equitysecurities-2,9676,064-2,9676,064 Tax expense216,9226,70125,5284,5004,50016,41 8 Changes in operating assets andliabilities.

9 Net (increase)/decrease in Loans andadvances204,430(67,947)94,906179,0536 ,63362,424 Net (increase)/decrease in Other assets(46,140)(11,583)(54,981)(42,674)(1 3,484)(20,642)Net (increase)/decrease in Treasury billswith maturity greater than 3 months44,57885,46676,739144,83091,10124, 495 Net (increase)/decrease in treasury bills(FVTPL)(97,242)(53,626)(473,275)(96 ,821)(53,625)(473,275)Net (increase)/decrease in asset pledged ascollateral22,114(10,653)(139,667)22,11 4(13,421)(142,435)Net (increase)/decrease in Debt securities(53,428)(21,532)(132,704)(21,1 25)(10,040)(1,375)Net (increase)/decrease in Restrictedbalances (cash reserves)(10,531)513(118,930)(10,516)881 (119,078)Net (increase)/decrease in Customerdeposits(41,733)12,641454,294(63 ,357)(111,717)191,562 Net (increase)/decrease in Other liabilities94,80518,78022,56689,62423,66 6(22,132)Net (increase)/decrease in derivative assets(8,595)63,34125,641(8,595)63,34125 ,641 Net (increase)/decrease in derivativeliabilities(13,657)(64,807)(46 ,029)(13,657)(64,807)(46,029)61,570(62,0 14)(228,577)146,504(93,082)(457,543)Inte rest received139,618103,945475,528121,62193,0 06424,710 Interest paid(44,619)(33,059)(216,637)(37,054)(30 ,532)(200,672)Tax paid21-(261)(28,522)--(20,431)VAT paid-(1,061)(2,235)-(1,061)(1,814)Net cash flows(used in)/generated fromoperating activities156,5697,550(443)231,071(31,66 9)(255,750)

10 7 ZENITH Bank PlcConsolidated And SEPARATE Interim financial Statements for the period ended March 31, 2018 Statement of Cash FlowsGroupBank31-Mar-1831-Mar-1731-Dec-1 731-Mar-1831-Mar-1731-Dec-17 Note(s) flows from investing activitiesPurchase of property and equipment34(8,037)(7,113)(41,883)(6,679) (4,686)(38,180)Proceeds from sale of property andequipment129125241129112206 Purchase of intangible assets35(1,412)(587)(6,694)(1,288)(587)( 6,288)Purchase of equity securities(35,429)-(1,000)(35,450)-(1,00 0)Net cash from/(used) in investingactivities(44,749)(7,575)(49,33 6)(43,288)(5,161)(45,262)Cash flows from financing activitiesNet inflow from on-lending facilities60,4069,55632,37760,4069,55632 ,377 Borrowings - inflow from long term borrowing-32,935102,373-35,141193,088 -repayment of long term borrowing51,644-(8,983)(10,839)-(66,911) Net Inflow from debt securities issued10,806-173,40310,806-173,403 Finance lease payments--(370)--(370)Dividends paid-(55,572)(63,422)-(55,572)(63,422)Ne t cash from/(used) in financingactivities122,856(13,081)235,37 860,373(10,875)268,165(Decrease)/Increas e in cash and cashequivalent234,676(13,106)185,599248, 156(47,705)(32,847)Cash at the beginning of the 916,342727,399727,399533,511566,358566,3 58 Effect of exchange rate movement on cashbalances(92)(68)3,344.