We Surpass Market Expectations With Double-Digit Growth In PBT -Zenith Bank Plc
Zenith Bank Plc has announced an impressive result for the year ended December 31, 2021, with Profit Before Tax (PBT) rising by 10 percent to N280.4 billion from N255.9 billion reported in the previous year.
A release issued by Mr. Ayoola Kusimo, the Bank’s Spokesman, stated that Zenith Bank achieved this despite of a challenging macroeconomic environment aggravated by the coronavirus (Covid-19) pandemic.
According to the bank’s audited financial results for the 2021 financial year presented to the Nigeria Exchange Group (NGX), the increase was due to growth in the top-line and very strong management of the treasury portfolio that increased efficiency, resulting in a drop in interest expense by 12 percent from N121.1 billion in 2020 to N106.8 billion in the current year. This further led to a 7 percent increase in net interest income of N320.8 billion in 2021 from N299.7 billion in 2020.
“The Group achieved Year-On-Year (YoY) growth in gross earnings of 10 percent from N696.5 billion reported in the previous year to N765.6 billion. This was on the back of 23 percent YoY growth in non-interest income from N251.7billion to N309billion and a 2 percents YoY growth in interest income from N420. 8 billion to N427.6 billion,” the bank stated
Zenith Bank also stated that it’s customers’ deposits increased by 21 percent, growing from N5.34 trillion in the previous year to N6.47 trillion in the current year. “The growth in customer deposits came from both Corporate and Retail customers.
“Retail deposits grew by N146 billion from N1.72 trillion in 2020 to N1.87 trillion in 2021. The Group’s continuous drive for retail deposits combined with the strategic rebalancing of its funding base helped to reduce the cost of funding from 2.1 percents to 1.5 percents in the current year.
“Although operating expenses grew by 13 percents YoY, growth remains below the inflation rate, and the Group improved its Earnings per Share (EPS) which grew by 6 percents from N7.34 to N7.78”.
The bank also stated that it’s Total assets increased by 11 percents, growing from N8.48 trillion in 2020 to N9.45 trillion in 2021, this it said was mainly driven by growth in customer deposits. “With the steady recovery in economic activities, the Group prudently grew its gross loans by 20 percents, from N2.9 trillion in 2020 to N3.5 trillion in 2021, with moderated NPL ratio from 4.29 percents to 4.19 percents YoY. The Group recorded impressive liquidity and capital adequacy ratios of 71.6 percents and 21.0 percents, which remained above regulatory thresholds of 30 percents and 15 percent, respectively.”
The Bank stated that in 2022, the Group intends to consolidate on the gains achieved in the previous year in all business segments and combine leadership in the industry, innovation and technology to drive improved performance and deliver enhanced returns to all stakeholders.
Zenith Bank Plc further stated that as a testament to its commitment to its shareholders, announced a proposed final dividend payout of N2.80 per share, bringing the total dividend to N3.10 per share. Adding that it has continued to distinguish itself in the Nigerian financial services industry through superior service offerings, unique customer experience and sound financial indices.
“The bank remains a clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed and safety of transactions,” the bank stated
Also, in recognition of its track record of excellent performance, Zenith Bank was voted as Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, and Best in Corporate Governance ‘Financial Services’ Africa 2020 and 2021 by the Ethical Boardroom.
“Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Number One Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” Ranking by The Banker Magazine and the Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021,” the bank said.
Similarly, the Bank also stated that it was honoured as ‘Bank of the Decade’ (People’s Choice) at the ThisDay Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment”, and the coveted “Most Responsible Organisation in Africa.