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.
No comments:
Post a Comment