Zenith Bank Plc has released its unaudited results for the nine months ended September 30, 2021, with Gross Earnings increasing by 2% from NGN509 billion in the same period in 2020 to NGN519 billion, despite the persistently difficult macroeconomic environment exacerbated by the Coronavirus (COVID-19) pandemic.
The increase in gross earnings was mostly attributable to an increase in current account maintenance fees and fees from electronic items during the period, according to the Group’s unaudited nine-month financial statements reported to the Nigerian Exchange (NGX). Profit Before Tax (PBT) increased by 1% to NGN180 billion, compared to NGN177 billion in the same period the previous year.
Despite continuing economic uncertainties, the Group was able to grow its net earnings through a reduction in its cost of funds while keeping the cost of risk flat. This strengthened Earnings Per Share (EPS) by 1% to NGN5.11. The Group achieved a 9% growth in interest income from loans and advances on the back of an increase in gross loans of 9% year to date and enhanced efficiency, culminating in a 21% drop in interest expense to NGN74 billion from NGN94 billion. This resulted in the growth in net interest income of 4%, from NGN225 billion recorded at the end of Q3 2020 to NGN235 billion in the current period.
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Total assets also increased by 3% to NGN8.8 trillion in the current period, while total deposits grew by 13% to close at NGN6.0 trillion from NGN5.3 trillion as at 31 December 2020, with a substantial contribution from retail deposits.
The Group’s cost of funds fell by 35% to 1.4 percent from 2.2 percent year on year as a consequence of a concerted effort to boost retail deposits over the last three years. As indicated by extraordinary increase in transaction volumes and value across its digital platforms, as well as robust growth in client acquisition, the Group continues to make great success in its retail banking strategy.
For the final quarter of the year, management’s outlook remains positive, buoyed by a declining inflationary trend, expected increase in foreign exchange inflows, and improving oil production. The Group remains focused on increasing its retail market share, consolidating its leadership position in the corporate segment and maintaining a robust balance sheet.
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. In 2020, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Retail Bank of the year at the 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 theSustainability, Enterprise, and Responsibility (SERAS) Awards.
Zenith Bank has distinguished itself in the Nigerian financial services business for over three decades by providing exceptional service offerings, a distinctive customer experience, and strong economic indicators. With multiple firsts in implementing innovative products, solutions, and a variety of alternative channels that ensure simplicity, speed, and security of transactions, the Bank is a clear leader in the digital field.