Zenith Bank’s net profit rises 10% to N756bn

Zenith Bank's net profit rises 10% to N756bn

Zenith Bank’s net profit rises 10% to N756bn

Zenith Bank Plc reports that its gross profits increased by 10% to N765.6bn at the end of December 2021, compared to N696.5bn in the same time in the previous year.

According to a bank statement, this was achieved despite a hard financial climate that had been exacerbated by the COVID-19 epidemic.

Non-interest income increased by 23 percent year on year from N251.7 billion to N309 billion, while interest income increased by two percent year on year from N420.8 billion to N427.6 billion, according to the lender’s audited financial results for the 2021 financial year, which were presented to the Nigerian Exchange Group.

Profit before tax increased by 10%, from N255.9 billion in the previous year to N280.4 billion in the current year, according to the company.

The gain was attributed to growth in the top line and effective management of the treasury portfolio, which boosted efficiency and resulted in a reduction in interest expenditure of 12 percent, from N121.1 billion in 2020 to N106.8 billion in the present year, according to the company.

In addition, it said that the rise in net interest income from N299.7bn in 2020 to N320.8bn in 2021 represented a seven percent increase.

The statement said:

“Customer deposits increased by 21 per cent, growing from N5.34tn in the previous year to N6.47tn in the current year.

“The growth in customer deposits came from both corporate and retail customers. Retail deposits grew by N146bn from NGN1.72tn in 2020 to NGN1.87tn 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 per cent YoY, growth remains below the inflation rate, and the group improved its earnings per share which grew by six per cent from N7.34 to N7.78.”

The bank said that its overall assets climbed by 11 percent, going from N8.48 trillion in 2020 to N9.45 trillion in 2021, mostly as a result of an increase in deposits from customers.

As a result of the gradual improvement in economic conditions, the firm claimed it increased its gross loans by 20%, from N2.9tn in 2020 to N3.5tn in 2021, while reducing its non-performing loan ratio from 4.29 per cent to 4.19 per cent year on year in the process.

The firm said that it had achieved liquidity and capital adequacy ratios of 71.6 percent and 21.0 percent, respectively, which were both over the legal standards of 30 percent and 15 percent, according to the company.

“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.”

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