Zenith Bank predicts brighter fortunes for Nigerian manufacturers

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Zenith Bank expects to grow its loan book by 2.5 percent this year as a recovering economy and a drive to win business with manufacturers helps to offset a decline in credit in the first half, it said on Tuesday.

Loans fell 6.3 percent in the six months to the end of June following a 4.6 percent decline last year, Zenith said on a call with analysts, Reuters reports.

The bank said weak economic growth affected lending last year.

However, as the economy improves it expects loans to grow, especially as the Central Bank of Nigeria introduces liquidity to the banking sector targeting credit to manufacturers.

“For the manufacturing sector, we still see some opportunity there. We believe that there would be an incentive for the manufacturers … and the engagement has started,” it said.

Zenith added its retail banking business was also growing.

It posted half-year pretax profit of 107.36 billion naira ($352 million), up from 92.18 billion naira in the same period last year.

Its shares dropped 0.84 percent to 23.75 naira, tracking a fall in the wider stock market, which was down 0.4 percent.

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