Zenith Bank has reported an increase in its revenue generation for the year 2020, according to its 2020 full year financial report despite the macroeconomic headwinds in the year under review.
According to Zenith Bank’s financial statements released to the investing public, the company generated N696.45 billion as revenue in FY last year, surpassing N662.25 billion grossed in the same period in 2019.
It was gathered that Zenith Bank Interest Income topped N420.81 billion between the first quarter and fourth quarter of 2020, rising slightly above the N415.56 billion reported during the corresponding period of 2019.
Interest Expense for the lender, however, dropped as it gained less from borrowed funds. Zenith Bank reported its Interest Expense clocked N121.13 billion in 2020 FY, lower than the N148.53 billion incurred in 2019 FY.
COVID-19 pandemic and the lockdown measures adopted by the Nigerian government had forced many companies to shut down, while banks, rated as essential, were allowed to open, but not in full capacity.
While the lockdown measure reduced the number of employees on duty for banks during the long four months lockdown and number of branches opened, Zenith Bank’s Operating expenses still rose.
Zenith Bank Operating expenses rose sharply from N129.45 billion of 2019 full year, to N148,11 billion during the twelve months period of last year.
The rising cost of operation had little or no impact on Zenith Bank’s profit before tax, with the lender reporting N255.86 billion for its PBT in 2020, against the N243.29 billion PBT recorded during the corresponding period of 2019.
The company’s Profit After Tax also followed the same growth path despite reduction in operation capacity during the twelve months of 2020.
Zenith Bank’s PAT rose to N230,56 billion, a significant climb when compared to the N208.84 billion generated in PAT for 2019 FY.