Zenith Bank Plc has released its financial results for the year ended December 31, 2021, reporting a double-digit increase of 10% in gross earnings to N765.6 billion, up from N696.5 billion the previous year. Despite a difficult macroeconomic environment exacerbated by the coronavirus (COVID-19) epidemic, this is the case.
According to the bank’s audited financial figures for the fiscal year 2021 provided to the Nigeria Exchange Group (NGX), the Group’s gross earnings increased 10% year on year (YoY) from NGN696.5 billion reported the previous year to N765.6 billion. This was due to a 23 percent YoY increase in non-interest income, which increased from N251.7 billion to N309 billion, and a 2% YoY increase in interest income, which increased from N420.8 billion to NGN427.6 billion.
Profit before tax increased by 10% in the current year, from NGN255.9 billion to NGN280.4 billion. The increase was attributed to increasing top-line growth and very effective treasury portfolio management, which boosted efficiency and resulted in a 12 percent reduction in interest expense from NGN121.1 billion in 2020 to NGN106.8 billion this year. As a result, net interest income increased by 7% to NGN320.8 billion in 2021, up from NGN299.7 billion in 2020.
Customer deposits climbed by 21%, from NGN5.34 trillion last year to NGN6.47 trillion this year. Both corporate and retail customers contributed to the increase in client deposits. From NGN1.72 trillion in 2020 to NGN1.87 trillion in 2021, retail deposits increased by NGN146 billion. The Group’s ongoing push for retail deposits, together with smart restructuring of its financing base, helped lower funding costs from 2.1 percent to 1.5 percent this year. Although operational expenses increased by 13% year on year, they remained below inflation, and the Group’s Earnings per Share (EPS) increased by 6% from NGN7.34 to NGN7.78.
Total assets climbed by 11%, from NGN8.48 trillion in 2020 to NGN9.45 trillion in 2021, attributable primarily to increases in customer deposits. With the continuous rebound in economic activity, the Group carefully increased gross loans by 20%, from NGN2.9 trillion in 2020 to NGN3.5 trillion in 2021, while maintaining a low NPL ratio of 4.29 percent to 4.19 percent year on year. The Group’s liquidity and capital adequacy ratios of 71.6 percent and 21.0 percent, respectively, were well over the regulatory standards of 30 percent and 15 percent.
In 2022, the Group plans to build on its previous year’s advances in all business segments, combining industry leadership, innovation, and technology to increase performance and deliver higher returns to all stakeholders.
The bank has suggested a final dividend payout of N2.80 per share, bringing the total dividend to N3.10 per share, demonstrating its commitment to its shareholders.
Zenith Bank has maintained its position as a leader in the Nigerian financial services market by providing outstanding service, a distinctive customer experience, and strong financial indicators. With multiple firsts in implementing innovative products, solutions, and a variety of alternative channels that ensure convenience, speed, and security of transactions, the bank is a clear leader in the digital field.
Zenith Bank was named Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, and Best Bank in Nigeria in the Global Finance Banking Awards 2021, in recognition of its outstanding performance. Best in Corporate Governance ‘Financial Services’ Africa 2020 and 2021 by the Ethical Boardroom, World’s Best Banks Awards 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, and Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020. The bank was also named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, as well as the Number One Bank in Nigeria by Tier-1 Capital in The Banker Magazine’s “2021 Top 1000 World Banks” Ranking, and the Retail Bank of the Year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.
Zenith Bank was also named Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, and won four awards at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, including “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.”
