Zenith Bank makes 2% more earnings YoY despite headwinds
By Jeph Ajobaju, Chief Copy Editor
Zenith Bank notched up N519 billion gross earnings in the third quarter of the year ended September 2021 (Q3 2021), a 2 per cent rise over N509 billion in Q3 2020, having braced headwinds in the macroeconomy made tougher by the pandemic.
Its unaudited financial results filed with the Nigerian Exchange (NGX) shows that gross earnings growth was spurred by an increase in current account maintenance and electronic products fees.
Profit Before Tax (PBT) rose to N180 billion, which is 1 per cent above N177 billion in Q3 2020.
The Zenith Bank Group grew net earnings through a reduction in cost of funds while keeping the cost of risk flat. This strengthened Earnings Per Share (EPS) by 1 per cent to N5.11.
The Group achieved a 9 per cent growth in interest income from loans and advances riding on an increase in gross loans of 9 per cent year to date and enhanced efficiency, leading to a 21 per cent drop in interest expense to N74 billion from N94 billion.
Zenith Bank said this resulted in net interest income growth of 4 per cent, from N225 billion in Q3 2020 to N235 billion in Q 32021.
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Other vital metrics
- Total assets rose 3 per cent to N8.8 trillion.
- Total deposits grew 13 per cent to N6.0 trillion from N5.3 trillion in Q4 2020 – with a substantial contribution from retail deposits.
- Cost of funds slashed 35 per cent to 1.4 per cent from 2.2 per cent YoY – as a result of the focused drive to increase retail deposits in the past three years.
The Zenith Bank Group says it continues to make significant progress in its retail banking drive, as evidenced by remarkable growth in transaction volumes and value across its digital platforms and strong growth in customer acquisition.
Its outlook for Q4 2021 remains positive, buoyed by a declining inflationary trend, expected increase in foreign exchange inflows, and improving oil production.
The Group remains focused on increasing its retail market share, consolidating its leadership position in the corporate segment, and maintaining a robust balance sheet.
About Zenith Bank
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 N1.1 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
Zenith Bank has won several awards in recent years for its excellent performance and commitment to global best practices.
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