Zenith Bank records N765.6bn gross earnings

COMFORT EKELEME, BUSINESS EDITOR

Zenith Bank Plc Monday released its audited financial results for the 2021 financial year ended December 31, 2021.

The Bank recorded double-digit growth of 10per cent in gross earnings which rose to N765.6 billion from N696.5 billion reported in the previous year.

Zenith Bank said this is despite 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 Group achieved Year-on-Year (YoY) growth in gross earnings of 10per cent from NGN696.5 billion reported in the previous year to N765.6billion.

This was on the back of 23per cent YoY growth in non-interest income from N251.7billion to N309billion and a 2per cent YoY growth in interest income from N420.8billion to NGN427.6billion.

Profit before tax also grew by 10per cent from N255.9 billion to N280.4 billion in the current year.

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 12per cent from N121.1 billion in 2020 to N106.8 billion in the current year.

This further led to a 7per cent increase in net interest income of N320.8 billion in 2021 from N299.7 billion in 2020.

Also, the result showed that customer deposits increased by 21per cent, growing from N5.34 trillion in the previous year to N6.47 trillion in the current year. The growth in customer deposits, the Bank said 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 2.1per cent to 1.5per cent in the current year.

Although operating expenses grew by 13per cent YoY, growth remains below the inflation rate, and the Group improved its Earnings per Share (EPS) which grew by 6per cent from N7.34 to N7.78.

Total assets increased by 11per cent, growing from N8.48 trillion in 2020 to N9.45 trillion in 2021, mainly driven by growth in customer deposits.

With the steady recovery in economic activities, the Group prudently grew its gross loans by 20per cent, from N2.9 trillion in 2020 to N3.5 trillion in 2021, with moderated Non-Performing Loan (NPL) ratio from 4.29per cent to 4.19per cent YoY.

According to the result, the Group recorded impressive liquidity and capital adequacy ratios of 71.6per cent and 21.0per cent, which remained above regulatory thresholds of 30per cent and 15per cent, respectively.

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.

As a testament to its commitment to its shareholders, the bank has announced a proposed final dividend payout of N2.80 per share, bringing the total dividend to N3.10 per share.

Zenith Bank 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 deploying innovative products, solutions, and an assortment of alternative channels that ensure convenience, speed, and safety of transactions.

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