Over the years, Zenith Bank, a leading pan-African financial institution has always been a trailblazer in the Nigerian banking industry. It has proven to be outstanding with its diligent pursuit of excellence and commitment to high-quality service. This, indeed has resulted in an enhanced performance of the bank in the year under review.
The foremost pan-African financial institution has displayed in clear terms its resilience and market leadership, Zenith Bank announced an impressive result for the year 2020, with profit after tax (PAT) of N299.7 billion. The Bank released its full year 2020 audited results showing Net Interest Income of N299.7 billion up by 12.23% from the N267.03 billion recorded a year earlier. Its Net interest income after adjusting for loan impairments increased to N260.15 billion from N243 billion. (+7.1%YoY), while the Profit before tax was N255.9 billion, compared to N243.3 billion recorded in 2019. (+5.2%YoY).Zenith’s earnings per share for the period under review is N7.34 from N6.65. (+10.4%YoY) and a final dividend of N2.70 was declared for every share of 50k each. The company’s share price of N26, up +4.8% YTD.
This is some percentage higher to Year 2019’s profit of N208.8 billion. These are amazing feats by the bank, making it the first Nigerian Bank to cross the N200 billion mark. The Group has recorded a growth in gross earnings, driven by the 29% increase in non-interest income in the previous year. Undeniably, Zenith Bank Plc., has embraced technology in its drive for leadership in the Nigerian banking industry, which makes it unique among its equals. It is one of the biggest banks, if not the biggest in Nigeria today, having roughly 600 branches and cash centres in Nigeria, the Bank transacts business with over 8 million customers across its network.
Since 2019, the drive for cheaper retail deposits coupled with the low interest yield environment helped reduce the cost of funding from 3.1% to 3.0%. However, this also affected net interest margin which reduced from 8.9% to 8.2% in the current year due to re-pricing of interest-bearing assets. Although returns on equity and assets held steady YoY at 23.8% and 3.4% respectively, the Group still delivered an improved Earnings per Share (EPS) which grew 8% from N6.15 to N6.65 in the current year.
Apparently, the bank could achieve these through its resilience and commitment to the growth of the market. According to a release by the bank, achieving these feats came with some resolutions, such as increasing its share of the market as it secured increased customer deposits across the corporate and retail space as deposits grew by a major percentage.
In demonstration of its commitment to its shareholders, the bank has announced a proposed final dividend pay-out of N2.50 per share, bringing the total dividend to N2.80 per share.
In 2020, the Group remained strategically positioned to capture the opportunities in the corporate and retail segments, while efficiently managing costs and expanding further its retail franchise employing digital assets and innovation.
Consistent with this superlative performance and in recognition of its track record of excellent performance, Zenith Bank was voted as the Best Commercial Bank in Nigeria 2019 by the World Finance and the Most Valuable Banking Brand in Nigeria 2019 by The Banker. The Bank was also recognized as Bank of the Year and Best Bank in Retail Banking at the 2019 BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and was ranked as the Best Digital Bank in Nigeria 2019 by Agusto & Co. Most recently, the Bank emerged as the Bank of the Decade (People’s Choice) at the Thisday Awards 2020.
Attaining lofty heights, such as being the Biggest Bank in Nigeria by tier-1 Capital 2020 – The Banker Magazine; Best Bank in Nigeria 2020 – Global Finance Magazine; Most Valuable Banking Brand in Nigeria 2020 – The Banker, London; Bank of the Decade (People’s Choice) – Thisday Newspaper, Nigeria; Bank of the Year 2020 – Independent Newspaper, Nigeria are no mean feats in Nigeria, where competition is fierce.
Back-to-back since 2012, Zenith Bank has remain on the top chart of banks with outstanding awards such as Best Bank in Corporate Governance 2012 – World Finance; Rated Biggest bank in Nigeria and 322 in the world – The Banker Magazine; Largest Bank in Nigeria/West Africa (by market cap.) 2011-12 – African Business; 3rd Biggest Company in West Africa 2012 – Forbes & CNBC Africa; Best Performing Ai 40 Company 2012-10-12 – African Investor; Best Bank in Nigeria 2012 – Global Banking and Finance Review; Best Commercial Bank in Africa 2012 – Capital Finance International (CFI); Best Bank in Corporate Governance 2012 – World Finance; FTSE Global Markets (2012) – 20 Global Super Brands.The Zenith Bank brand has powered ahead of competition also on account of its huge investment in Information Communication Technology (ICT), a fact attested to by the Web Jurist award which rated Zenith Bank as the bank with the best website in Nigeria.
Olamide Adeniji is a member of the editorial team of TheScript Newspapers
