LATEST UPDATES
Card-image-cap

Market | Archives

Zenith Bank Declares N244.56bn PAT in 2021 Audited Results; Proposes 2.80k Final Dividend

Mar 02, 2022   •   by Proshare Research   •   Source: Proshare   •   eye-icon 209 views

Monday, February 28, 2022 / 5:13 PM / NGX/ Header Image Credit: The Will News Media


Zenith Bank Plc released its 2021 Audited results for the period ended December 31st, 2021.


Key Highlights

  • Net Interest Income grew by 7% to N320.80bn from N299.68bn


  • Profit before tax stood at N280.37bn


  • Profit after tax stood at N244.56bn


  • Share Price Currently Stands at N26.95k


Proshare Nigeria Pvt. Ltd.


Visit Zenith Bank Plc IR Page in Proshare MARKETS

Proshare Nigeria Pvt. Ltd.


The Zenith Bank Group achieved year-on-year (YoY) growth in gross earnings of 10% from NGN696.5 billion reported in the previous year to N765.6billion. This was on the back of 23% YoY growth in non-interest income from NGN251.7billion to NGN309billion and a 2% YoY growth in interest income from N420.8billion to NGN427.6billion. 

 

Profit before tax also grew by 10% from NGN255.9 billion to NGN280.4 billion in the current year. The increase was due to growth in the top-line and very strong management of our treasury portfolio that increased efficiency, resulting in a drop in interest expense by 12% from NGN121.1 billion in 2020 to NGN106.8 billion in the current year. This further led to a 7% increase in net interest income of NGN320.8 billion in 2021 from NGN299.7 billion in 2020.

 

Customer deposits increased by 21%, growing from NGN5.34 trillion in the previous year to NGN6.47 trillion in the current year. The growth in customer deposits came from both our corporate and retail customers, with retail deposits continuing to grow, up by NGN146 billion from NGN1.72 trillion in 2020 to NGN1.87 trillion in 2021. The Group's continuous drive for retail deposits combined with the strategic rebalancing of its funding base helped to reduce cost of funding from 2.1% to 1.5% in the current year. However, net interest margin declined from 7.9% to 6.7% in the current year due to lower yields on held-to-maturity (HTM) investment securities. Operating expenses grew by 13% YoY but growth remains below the inflation rate. The Group improved its Earnings per Share (EPS) which grew by 6% from NGN7.34 to NGN7.78, however, returns on equity and assets reduced from 22.4% to 20.4% and from 3.1% to 2.7% respectively due to the significant growth in the balance sheet.

 

Total assets increased by 11%, growing from NGN8.48 trillion in 2020 to NGN9.45 trillion in 2021, mainly driven by growth in customers' deposits. With the steady recovery in economic activities, the Group prudently grew its gross loans by 20%, from NGN2.9 trillion in 2020 to NGN3.5 trillion in 2021 with a moderated NPL ratio from 4.29% to 4.19% YoY. The capital adequacy ratio reduced from 23% to 21% while liquidity grew from 66.2% to 71.6%. Both prudential ratios are still well above regulatory thresholds.

 

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.

Get the App

apple-store  play-store

Connect with us


Proshare is a professional practice focused on delivering research and information services to bridge the gap between investors and markets; by delivery on credible, reliable, and timely engagements through the following areas — Impact Research, Market Intelligence, Strategic Advisory, Stakeholder Relations & Digital Media.