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Zenith Bank Plc has announced an impressive result for the year ended December 31, 2021, recording a double-digit growth of 10 percent in gross earnings which rose to N765.6 billion from N696.5 billion reported in the previous year. This was despite a challenging macroeconomic environment aggravated by the COVID-19 pandemic.
According to the bank’s audited financial results for the 2021 financial year presented to the Nigerian Exchange Group (NGX), the Group achieved year-on-year (YoY) growth in gross earnings of 10 percent from N696.5 billion reported in the previous year to N765.6billion. This was on the back of 23 percent YoY growth in non-interest income from N251.7billion to N309billion and a 2 percent YoY growth in interest income from N420.8billion to N427.6billion.
Profit before tax also grew by 10 percent from N255.9 billion to N280.4 billion in the year under review. The increase was due to growth in the top-line and very strong management of the treasury portfolio that increased efficiency, resulting in a 12 per cent drop in interest expense 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.
Customer 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 percent to 1.5 percent in the current year. Although operating expenses grew by 13 percent YoY, growth remains below the inflation rate, and the Group improved its Earnings per Share (EPS) which grew by 6 percent from N7.34trillion to N7.78trillion.
Total assets increased by 11 percent, 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 20 percent, from N2.9 trillion in 2020 to N3.5 trillion in 2021, with moderated NPL ratio from 4.29 percent to 4.19 percent YoY. The Group recorded impressive liquidity and capital adequacy ratios of 71.6 percent and 21.0 percent, which remained above regulatory thresholds of 30 percent and 15 percent, 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.
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.
