.As Gbadebo links success to clear vision, innovation
Over the years, Zenith Bank Plc , as one of the leading Deposit Money Banks (DMBs) in Nigeria has been at the forefront of surpassing market expectations through its impressive results and commitment to numerous stakeholders.
This is among the reasons why the bank has received several positive ratings both from within and outside the country.
Zenith Bank Monday released its audited financial results for the year ended December 31, 2021, recording a double-digit growth of 10per cent in gross earnings which rose to N765.6 billion from N696.5 billion reported in the previous year.
This feat, the bank said was achieved despite a challenging macroeconomic environment aggravated by the Coronavirus (COVID-19) pandemic, which in the last two years, has ravaged economies of the world.
Meanwhile, in 2022, the Group has hinted of plans 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.
As a testament to its commitment to its shareholders, Zenith Bank has announced a proposed final dividend payout of N2.80 per share, bringing the total dividend to N3.10 per share.
As an institution built on great vision and mission, the bank has in no small measure been consistent in paying dividends to its numerous shareholders.
Speaking with Daily Champion, a shareholder activist, Alhaji Olatokunbo Gbadebo declared that Zenith Bank would continue to deliver robust results to shareholders due to its pragmatic, proactive, clear vision and strict navigation of the great master plan and good successive plans.
He said, “Zenith Bank is a bank that keeps to its traditions/values and you have to be on the think-tank -train to remain on board; while its pro-activeness gave it the edge to remain afloat and ahead of other banks.
And like l said in the past on the bank, every year results shall be an improvement on the last, because of its organics business mobility across board.
“For you to lead the bank, you just have to be part and parcel of its vision/mission, dreams to be able to pilot its affairs to expectations. Therefore, the results of today are just part of the journey’s story and better days are coming in the future, for that is the reason it is called,’ The Bank of Hope,” he said.
Zenith Bank has in the last few years, built a reputation in e-Banking in Nigeria, having blazed new trails in the deployment of Information and Communication Technology (ICT) infrastructure to create innovative products that meet the needs of its teeming customers.
In its audited financial results for the 2021 financial year which was released on the floor of the Nigeria Exchange Group (NGX), the Group achieved Year-on-Year (YoY) growth in gross earnings of 10per cent from NGN696.5 billion reported in the previous year to N765.6billion.
This was on the back of 23per cent YoY growth in non-interest income from N251.7billion to N309billion and a 2per cent YoY growth in interest income from N420.8billion to N427.6billion.
Profit Before Tax (PBT) also grew by 10per cent from NGN255.9 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 12per cent from N121.1 billion in 2020 to N106.8 billion in the current year. This further led to a 7per cent increase in net interest income of N320.8 billion in 2021 from N299.7 billion in 2020.
The bank’s customer deposits increased by 21 per cent, growing from N5.34 trillion in the previous year to N6.47 trillion in the year under review.
According to the bank, the growth in customer deposits came from both corporate and retail customers, adding that retail deposits grew by N146 billion from N1.72 trillion in 2020 to N1.87 trillion in 2021.
The Group’s continuous drive for retail deposits combined with the strategic rebalancing of its funding base helped to reduce the cost of funding from 2.1per cent to 1.5per cent in the current year.
Although operating expenses grew by 13per cent YoY, growth remains below the inflation rate, and the Group improved its Earnings per Share (EPS) which grew by 6per cent from N7.34 to N7.78.
Total assets increased by 11per 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, the Group prudently grew its gross loans by 20per cent, from N2.9 trillion in 2020 to N3.5 trillion in 2021, with moderated Non-Performing Loan (NPL) ratio from 4.29per cent to 4.19per cent YoY.
The Group recorded impressive liquidity and capital adequacy ratios of 71.6per cent and 21.0per cent, which remained above regulatory thresholds of 30per cent and 15per cent, respectively.
Zenith Bank has continued to distinguish itself in the Nigerian financial services industry through superior service offerings, unique customer experience, and sound financial indices. The bank remains a clear leader in the digital space with several firsts in deploying innovative products, solutions, and an assortment of alternative channels that ensure convenience, speed, and safety of transactions.
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, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, 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, Number One Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” Ranking by The Banker Magazine and the Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.
Similarly, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment”, and the coveted “Most Responsible Organisation in Africa.
Also, the institution recently bagged Champion Newspapers Bank of the Year 2021 Award while the presentation has been fixed for Friday May 20 at the Edo Hotels and Suites on Victoria Island, Lagos.
With total market capitalisation at N789.622 billion as of December 31, 2021, Zenith Bank reinforced its position as the industry leader.
Zenith Bank Plc and 14 other highly capitalised stocks on the Nigerian Exchange Limited NGX contributed 90.2 per cent or N20.10 trillion to the overall N22.3 trillion market capitalisation in 2021.
Zenith Bank’s total market capitalisation stood at N789.622 billion as at December 31, 2021, as it led the banking sector on the NGX. The bank’s share price gained one per cent to close 2021 at N25.15 in 2021.
The bank has clearly distinguished itself in the banking industry through superior service quality, unique customer experience, and sound financial indices.
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