Zenith Bank has grown enormously in three decades to become Nigeria’s largest and one of Africa’s largest financial institutions
By Eugene Onyeji
Zenith Bank, a leading Nigerian financial institution, has announced an impressive result for the year ended December 31, 2021 with profit before tax (PBT) rising to N280.4 billion for the 12 months ended December 31, 2021. The Group mitigated the knock-on effects despite the challenging macroeconomic environment aggravated by the coronavirus (COVID-19) pandemic.
As a testament to its commitment to its shareholders, the bank has announced a proposed final dividend pay-out of N2.80 per share, bringing the total dividend to N3.10 per share.
According to the bank’s audited financial results for the 2021 financial year presented to the Nigeria Exchange Group (NGX), the Group achieved year-on-year (YoY) growth in gross earnings of 9.92 percent from N696.5 billion reported in the previous year to N765.6 billion. This was on the back of 23 percent YoY growth in non-interest income from N251.7 billion to N309 billion and a 2% YoY growth in interest income from N420.8 billion to NGN427.6 billion.
Profit before tax grew by 9.58 per cent from N255.9 billion to N280.4 billion in the current year. 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 11.84 per cent from N121.1 billion in 2020 to NGN106.8 billion in the current year. This further led to a 7.05 increase in net interest income of N320.8 billion in 2021 from N299.7 billion in 2020.
Customer deposits increased by 21.20 per cent, 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 also improved its Earnings per Share (EPS) which grew by 6.09 per cent from N7.34 to N7.78.
Total assets increased by 11.40 per cent, 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, Zenith Bank prudently grew its gross loans by 20.75 per cent, from N2.8 trillion in 2020 to N3.4 trillion in 2021, with moderated NPL ratio from 4.29 per cent to 4.19 percent YoY. The Group recorded impressive liquidity and capital adequacy ratios of 71.6 per cent and 21.0 per cent, which remained above regulatory thresholds of 30 per cent and 15 per cent, respectively.
Zenith Bank has grown enormously in three decades to become Nigeria’s largest and one of Africa’s largest financial institutions by Tier-1 Capital, with shareholders’ funds of N1.2 trillion as of December 31, 2021.
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The Group says they will 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 for 2022.
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.
The Bank’s Group Managing Director/Chief Executive Officer, Ebenezer Onyeagwu, emerged “CEO of the Year” for the second year running at the Sustainability, Enterprise and Responsibility (SERAS) CSR Africa Awards.
The judges said they selected him for a number of reasons, including his facilitation of continued investment in social initiatives that support the United Nations Sustainable Development Goals (SDGs).
Zenith Bank was also 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, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, and Best in Corporate Governance ‘Financial Services’ Africa 2020 and 2021 by the Ethical Boardroom.
Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Number One Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” Ranking by The Banker Magazine and the Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.
Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “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.