June 01, (THEWILL) – Zenith Bank Plc has announced the redemption of the balance of $107 million of its $500 million Eurobond Notes due May 30, 2022.
In a statement to the Nigerian Exchange Limited (NGX) and signed by Micheal Osilama Otu, Group Company Secretary/General Counsel, the bank noted that this is a further demonstration of its highly diversified and robust funding sources, and its impeccable pedigree and track records in treasury management.
Zenith Bank recently announced its unaudited results for the first quarter ended 31st March 2022, with an appreciable growth of 22 percent in Gross Earnings from N157.3 billion reported in Q1 2021 to N191.5 billion in Q1 2022.
From the unaudited statement of account earlier presented to the Nigerian Exchange (NGX), the strong double-digit growth in the topline culminated in an increase in the bottom line, as the Group recorded an 11 percent Year-on-Year (YoY) increase in profit before tax, growing from N61.02 billion in Q1 2021 to N67.99 billion in Q1 2022.
Profit after tax also grew by 10 percent, from N53.06 billion to N58.19 billion over the same period. The growth in the topline arose from both interest income and non-interest income. Interest income grew by 25 percent, from N101.12 billion in Q1 2021 to N126.38 billion in Q1 2022, while non-interest income grew by 12 percent, from N51.20 billion to N57.23 billion.
The growth in interest income and non-interest income arose from the combined effects of an improvement in interest income on loans and advances (as risk assets continue to grow and pricing is gradually improving) and an improvement in non-interest income as the Bank continues to deploy its retail strategy, thereby acquiring more customers and expanding its electronic banking income from the increased volume of transactions across all its channels.
Total assets grew by 9 percent from N9.45 trillion to N10.32 trillion in 2022, mainly driven by growth in customers’ deposits. Customer deposits grew by 12%, from N6.47 trillion in December 2021 to N7.25 trillion in March 2022. Savings account balance, which is solely retail, grew by over N68 billion and is a validation of the robust customer acquisition strategy and versatile electronic platforms and digital channels.
The Eurobond Notes were issued on May 30, 2017 as the second tranche of the bank’s $1billion global medium term Note program, with 5-year tenor and coupon of 7.375 percent.
The bank had in September 2019, redeemed $392.6 million of the Notes through a cash tender offer ahead of its maturity date of May 30. 2022.
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.
