Despite a challenging macroeconomic environment aggravated by the coronavirus (COVID-19) pandemic, Zenith Bank Plc has announced gross earnings of N765.6billion as at December 31, 2021, compared with N696.5billion achieved in the corresponding period in 2020.
In the audited financial results for 2021, presented to the Nigeria Exchange Group (NGX) yesterday, the bank said that the 10 percent growth was achieved on the back of 23 percent year-on-year, YoY, growth in non-interest income from N251.7billion to N309billion and a two (2%) percent YoY growth in interest income from N420.8billion to NGN427.6billion.
The profit before tax, PBT, of the Group also grew by 10 percent from N255.9billion to N280.4billion in the review period.
Zenith said 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 N121.1billion in 2020 to N106.8billion in the year under review.
This further led to a seven per cent increase in net interest income of N320.8billion in 2021 from N299.7billion in 2020.
Also, the bank said that customer deposits increased by 21 percent, growing from N5.34trillion in the previous year to N6.47trillion in the year under review. It said the growth in customer deposits came from both corporate and retail customers.
Retail deposits grew by N146billion from N1.72trillion in 2020 to N1.87trillion 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 per cent to 1.5 per cent in the current year.
Although operating expenses grew by 13 percent YoY, growth remained below the inflation rate, and the Group improved its Earnings per Share (EPS), which grew by six per cent from N7.34 to N7.78.
Total assets increased by 11 percent, growing from N8.48trillion in 2020 to N9.45trillion in 2021, mainly driven by growth in customer deposits.
Also, with the steady recovery in economic activities, the Group grew its gross loans by 20 percent, from N2.9trillion in 2020 to N3.5trillion 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.
The group said that this year, it intended to consolidate on the gains achieved in 2021 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 of N2.80 per share, bringing the total dividend to N3.10 per share.