Zenith Bank posts N244bn profit in 2021

One of Nigeria’s biggest banks, Zenith Bank Plc recorded a single-digit growth in top and bottom-line profit, according to the bank’s full year audited financial statement released recently.

The statement revealed a 7.05 percent growth in Interest Income from N420.81 billion to N427.60 billion in the current period, and also reported a profit after tax of N244.56 billion, from N230.57 billion in the corresponding period of 2020, reflecting a 6.07 percent increase Y-o-Y.

Interest Income arose from income generated on loans and advances made to customers as well as earnings assets.

Income from loans and advances appreciated by 16.51 percent from N250.81 billion in 2020 to N292.22 billion in the current period, as the bank’s loans and advances to customers grew by N576.70 billion Y-o-Y.

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Income generated on combined earnings assets, however, declined by 10.44 percent from N143.60 billion to N128.61 billion in the period under review.

E-banking income for the period stood at N37.47 billion, a 38.4 percent increase from 2020 income of N27.08 billion. Total fees and commission income was recorded as N132.88 billion. Interest expense declined by 11.84 percent, to be recorded as N106.79 billion.

In addition, the bank spent N28.72 billion on information technology during the year, channeled towards enhancing its mobile products and services. During the period, income tax expenses appreciated by 41.59 percent, subduing bottom-line profit.

The company’s net assets increased by N163.16 billion from N1.12 trillion recorded as at December 2020 to N1.28 trillion in the period under review. Total assets, however, stood at N9.45 trillion. Earnings per share for FY 2021 was recorded as N7.78.

Zenith Bank Plc last traded at N27.10 per share and its market capitalization stands at N850.84 billion as at Monday, February 28, 2021. Year-to-date performance shows that the share price of the company has gained 7.75%.