One of Nigeria’s Tier 1 financial institution, Zenith Bank International Plc, has announced a N280.4 billion profit before tax (PBT) for the year ended December 31, 2021. The bank also 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.
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.