Zenith Bank Nets N244.4bn 2021 Profit, Offers N2.80 Final Dividend

The board of Zenith Bank Plc, on Monday, submitted its audited financials for the full-year ended December 31, 2021, highlights of which were the slim growth in gross earnings and net profit, offering a final dividend of N2.80 per share, up from N2.70, which brings total payout for the year to N3.10 each, as against N3.00, from the earnings per share of N7.78, up from previous year’s N7.34 each.

The dividend is payable to shareholders whose names appear on the register on March 25, 2022, qualify for the dividend, while payment will be made electronically on April 6, 2022, subject to the approval of shareholders at the annual general meeting slated for that day.

A breakdown of the gross earnings showed that Nigerian corporate retail and pension custodian services accounted for N342.517bn of interest and similar income; followed by N68.955bn from its African business; and N16.309bn from Europe; while total income on fee and commission income amounted to N120.648bn; N8.59bn and N3.646bn respectively; other operating income, N53.528bn; N1.599bn and a loss of N1.101bn. Also, N171.469bn came from the Nigerian operations as trading gains; while the African business recorded a N4.447bn loss; and N461m from Europe.

The audited result also showed that interest and similar income stood at N427.597bn, from N420.813bn, while expense dropped to N106.793bn from N121.131bn at the end of 2020; resulting in net interest income of N320.804bn, representing an increase from N299.682bn. The impairment loss of N59.932bn, up from N39.534bn, left net interest income after impairment loss on financial and non-financial instruments flat at N260.872bn from N260.148bn.

Net income on fees and commission jumped from N79.332bn to N104.958bn, boosted fees earned on electronic products, which rose from N37.47bn to N27.078bn; followed by account maintenance fee of N31.39bn; up from N21.988bn; and credit-related fees of N18.054bn, up from N13.913bn. Trading gains climbed to N167.483bn from N121.678bn, helped by the N42.438bn gains on other trading books, where it recorded a loss of N18.735bn in 2020; while other operating income decreased to N37.594bn from N50.735bn, after foreign currency revaluation gains fell from N43.441bn to N25.537bn. Depreciation of property and equipment stood at N25.305bn from N25.125bn; amortization of intangible assets was N3.779bn, compared to N3.537bn. Personnel expenses was also flat at N79.885bn from N79.52bn; just as operating expenses increased to N180.564bn from N147.85bn boosted by the N37.92bn in AMCON levy, which rose from N30.948bn; and information technology expenses followed with N28.716bn, up from N20.44bn; resulting in profit before tax of N280.374bn, up from N255.861bn.

Income tax expenses rose to N35.816bn from N25.296bn; bringing net profit for the period to N244.558bn from N230.565bn.

On the balance sheet, total assets for the period amounted to N9.447tr, up from N8.481tr, the bulk of which was the N3.355tr in loans and advances, after increasing from N2.779tr; just as total liabilities improved to N8.168tr from N7.363tr, lifted by the N6.472tr in customer deposits, which improved from N5.339tr.