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.