By Jeph Ajobaju, Chief Copy Editor
Zenith Bank made N106 billion in Profit After Tax (PAT) in half year ended June 30 (H1 2021), rising 2 per cent from N104 billion in H1 2020 amid macroeconomic challenges exacerbated by the pandemic.
Audited financials presented to the Nigerian Exchange (NGX) also show that the Zenith Bank Group grew profit before tax 3 per cent, from N114 billion in H1 2020 to N117 billion in H1 2021.
Non-interest income rose 9 per cent, from N116 billion in H1 2020 to N127 billion in H1 2021.
An overall significant reduction in interest expense by 26 per cent and growth in non-interest income by 9 per cent culminated in improved profitability.
Retail journey
The Zenith Bank Group said its retail journey continues to deliver positive results as retail deposits grew by N38.2 billion, from N1.72 trillion to N1.76 trillion year-to-date (YTD).
Savings balances shot up 2 per cent YTD to close at N1.18 trillion, from N1.16 trillion in the fourth quarter of 2020 (Q4 2020).
Other key metrics
· Cost of funding slashed from 2.2 per cent in H1 2020 to 1.3 per cent in H1 2021, helped by the drive for increased retail deposits and a low-interest yield environment.
· Operating expenses grew 10 per cent YoY but below the inflation rate
· Earnings Per Share (EPS) rose 2 per cent from N3.30 to N3.38
· Total customer deposits grew 8 per cent to N5.77 trillion, demonstrating growth in market share
· Total assets grew to N8.52 trillion, from NGN8.48 trillion in H1 2020
· Gross loans jumped 3 per cent YTD, from N2.92 trillion to N2.99 trillion
· Non-Performance Loans (NPL) ratio is 4.51 per cent (FYE 2020: 4.29 per cent)
· Cost of risk reduced to 1.3 per cent (June 2020: 1.8 per cent)
· Liquidity ratio is 69.9 per cent, which is above regulatory threshold
· Capital adequacy ratio is 22.0 per cent, which is above regulatory threshold
The Zenith Bank Group said despite the continued prevalence of the coronavirus pandemic, there is cautious optimism that the global economy will continue to recover as vaccination programmes intensify.
It noted that Nigeria’s Gross Domestic Product (GDP) grew 5.01 per cent in
Q2 2021, and the inflation rate – which peaked in Q1 2021 at 18.17 per cent – is gradually trending down (17.38 per cent as of July 2021).
“The Group is well-positioned to maximise the opportunities that these recovering fundamentals present while leveraging technology to expand its retail footprints to deliver improved returns to all its stakeholders,” it added.
Zenith Bank’s rising profile
Zenith Bank has grown enormously in 30 years to become Nigeria’s largest and one of Africa’s largest financial institutions by Tier-1 Capital, with shareholders’ funds of N1.1 trillion ($2.64 billion) as of December 31, 2020.
It distinguishes itself in the Nigerian financial services industry through superior service offerings, unique customer experience, and sound financial indices.
Zenith Bank is the clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed, and safety of transactions.
Recent awards
Among other awards, Zenith Bank won
· Number One Bank in Nigeria by Tier-1 Capital in the 2021 Top 1000 World Banks Ranking published by The Banker Magazine
· 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 2021
· Best Corporate Governance ‘Financial Services’ Africa 2021 by the Ethical Boardroom
· Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2021
· Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020
· Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020
· Best Corporate Governance ‘Financial Services’ Africa 2020 by the Ethical Boardroom
· Number One Bank in Nigeria by Tier-1 Capital in the 2020 Top 1000 World Banks Ranking published by The Banker Magazine.
· Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020
· Bank of the Decade (People’s Choice) at the ThisDay Awards 2020
· Retail Bank of the year at the 2020 BusinessDay Banks and Other Financial Institutions (BOFI) Awards
· Best Company in Promotion of Good Health at the Sustainability, Enterprise and Responsibility (SERAS) Awards 2020
· Best Company in Promotion of Gender Equality and Women Empowerment at the Sustainability, Enterprise and Responsibility (SERAS) Awards 2020
