Zenith Bank Plc has announced an impressive result for the year ended December 31,
2021, recording a double-digit growth of 10% in gross earnings which rose to N765.6 billion
from N696.5 billion reported in the previous year. This is despite a challenging
macroeconomic environment aggravated by the coronavirus (COVID-19) pandemic.
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 10% from NGN696.5 billion reported in the previous year to N765.6billion. This
was on the back of 23% YoY growth in non-interest income from N251.7billion to
N309billion and a 2% YoY growth in interest income from N420.8billion to NGN427.6billion.
Profit before tax also grew by 10% from NGN255.9 billion to NGN280.4 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 12%
from NGN121.1 billion in 2020 to NGN106.8 billion in the current year. This further led to a
7% increase in net interest income of NGN320.8 billion in 2021 from NGN299.7 billion in
2020.
Customer deposits increased by 21%, growing from NGN5.34 trillion in the previous year to
NGN6.47 trillion in the current year. The growth in customer deposits came from both
corporate and retail customers. Retail deposits grew by NGN146 billion from NGN1.72
trillion in 2020 to NGN1.87 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 2.1% to 1.5% in the current year. Although operating expenses grew by 13%
YoY, growth remains below the inflation rate, and the Group improved its Earnings per
Share (EPS) which grew by 6% from NGN7.34 to NGN7.78.
Total assets increased by 11%, growing from NGN8.48 trillion in 2020 to NGN9.45 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 20%, from NGN2.9 trillion in 2020 to
NGN3.5 trillion in 2021, with moderated NPL ratio from 4.29% to 4.19% YoY. The Group
recorded impressive liquidity and capital adequacy ratios of 71.6% and 21.0%, which
remained above regulatory thresholds of 30% and 15%, respectively.
In 2022, the Group intends 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, the bank has announced a proposed
final dividend payout of N2.80 per share, bringing the total dividend to N3.10 per share.
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.
