March 01, (THEWILL) – Nigeria’s biggest bank by market capitalisation, Zenith Bank Plc, has reported impressive performance for its 2021 full-year (FY) operations as profit after tax (PAT) rises to N244.5 billion – the best so far.
This reflects a year-on-year growth of 6.07 percent against N230.6 billion recorded in FY 2020.
Profit before tax (PBT) also maintained a growth trajectory; it stood at N280.4 billion representing 9.6 percent higher than N255.9 billion it posted in the preceding year.
In a statement released on Monday, Zenith revealed that its profit performance was on the back of an impressive all-margin growth as interest and trading income rose year on year.
Specifically, the bank recorded a 7.05 percent growth in Interest Income from N420.81 billion in the year before to N427.60 billion in the current period.
The bank also reported earnings per share of N7.79, 6 percent higher than the N7.34 reported a year earlier.
By this, Zenith Bank has recorded a growth in earnings per share every year since 2016.
Further look at the bank’s FY 2021 performance report showed a 51.6 percent increase in loan losses – resulting in net-interest-after-impairments being flat at N260.8 billion.
This may be attributed to the effects of post-COVID-19 slow economic recovery.
The bank, however, made up for it with income from commission and fees rising 31 percent to N103.9 billion year-on-year.
It also raked in N167.4 billion in net trading income representing a 37.6 percent increase year-on-year.
Zenith Bank also grew its deposits by a whopping 21.2 percent to N6.4 trillion, while its total assets are now N9.4 trillion.
Net assets rose 14.4 percent to N1.27 trillion during the review period.
The topmost new generation bank saw its share price rise by 0.56 percent in Lagos on Monday, following the earnings release.
Based on its current share price, Zenith Bank’s dividend yield is about 10 percent.
Year-to-date performance shows that Zenith’s share price has gained 7.75 percent.
The lender’s last traded was N27.10 per share, with its market capitalisation standing at N850.84 billion as of Monday, February 28, 2021.
The bank has proposed a dividend per share of N2.8 per share up from N2.7 per share in the preceding.
When contacted for comment, the Chairperson, Pragmatic Shareholders Association of Nigeria (PSAN), Mrs Bisi Bakare, commended Zenith Bank for the impressive performance despite the tough times preceded by the COVID-19 pandemic.
“I am particularly happy about this report; Zenith has always made us proud. Remember they paid an interim dividend in the year and now they are paying us a final dividend. It is always joyful when shareholders receive dividends on their investments because that is the way to know that a company is doing well. I pray they continue in the years ahead,” Bakare told THEWILL in a telephone conversation.
Zenith Bank by its resilience in a challenging environment had outranked Guaranty Trust Holding Company to become Nigeria’s biggest bank by market value.
The bank also belongs to the exclusive Premium Board league of the Nigerian Exchange Limited, a platform that separates the ‘men from the boys’.
For over three decades, Zenith Bank has distinguished itself in the Nigerian financial services industry through superior service offerings, unique customer experience, and sound economic 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.
“You cannot have such sophisticated facilities and not be ahead of the others”, Bakare said.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
