In a clear demonstration of its resilience, Zenith Bank Plc has
announced its audited results for the half-year ended 30 June 2021,
recording positive growth across key financial metrics despite a
challenging macroeconomic environment exacerbated by the COVID 19
pandemic.
According to the bank’s audited half-year financial results presented to
the Nigerian Exchange (NGX), the Group recorded a growth in profit
before tax of 3% from NGN114 billion reported in H1 2020 to NGN117
billion in H1 2021. The Group also recorded a 9% growth in non-interest
income from NGN116 billion in June 2020 to NGN127 billion in June 2021.
Overall, the significant reduction in interest expense by 26% and growth
in non-interest income by 9% culminated in improved profitability.
The Group’s retail journey continues to deliver positive results as
retail deposits grew by NGN38.2 billion from NGN1.72 trillion to NGN1.76
trillion year-to-date (YTD). Savings balances grew marginally by 2% YTD
to close at NGN1.18 trillion from NGN1.16 trillion as at December 2020.
The drive for increased retail deposits and a low-interest yield
environment helped reduce the cost of funding from 2.2% to 1.3% in the
current period. Operating expenses grew by 10% YoY, but growth remains
below the inflation rate, while the Group improved its Earnings per
Share (EPS) which grew 2% from NGN3.30 to NGN3.38 for the half-year
ended June 2021.
The Group also increased total customer deposits by 8% to close the
period at NGN5.77 trillion, demonstrating growth in the market share.
Total assets grew marginally to NGN8.52 trillion as at 30 June 2021 from
NGN8.48 trillion recorded as at 31 December 2020. Despite the COVID-19
pandemic induced challenges and the challenging operating environment,
the Group grew its risk assets as gross loans were up by 3% YTD, from
NGN2.92 trillion to NGN2.99 trillion. This was conservatively achieved
at a low Non-Performance Loans (NPL) ratio of 4.51% (FYE 2020: 4.29%)
and a reduced cost of risk of 1.3% (June 2020: 1.8%). Prudential ratios
such as liquidity and capital adequacy also remained above regulatory
thresholds at 69.9% and 22.0%, respectively.
Despite the continued prevalence of the COVID-19 pandemic, there is
cautious optimism that the global economy will continue to recover as
vaccination programmes are intensified. On the domestic economy,
Nigeria’s Gross Domestic Product (GDP) grew by 5.01% in the second
quarter of 2021, and the inflation rate, which peaked in March 2021 at
18.17%, is gradually trending down (currently at 17.38% as at 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.
In recognition of its track record of excellent performance, Zenith Bank
was voted as Best Commercial Bank in Nigeria in the World Finance
Banking Awards 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 and 2021, 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, and Number One
Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks”
Ranking by The Banker Magazine. The bank was also recognised as 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, and Best Company in Promotion of Good Health and
Well-Being as well as Best Company in Promotion of Gender Equality and
Women Empowerment at the Sustainability, Enterprise and Responsibility
(SERAS) Awards 2020.
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 NGN1.1 trillion ($2.64 billion) as at 31st
December 2020. The Bank continues to distinguish 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.