Zenith Bank Plc recently on February 28, 2022, released its 2021 full-year audited financial statement, declaring profit after tax of N244.5 billion. This is a reflection of a 6.07% increase year on year on the bank’s financials.
Interest expense moderation improves the topline performance
Interest expense for FY’21 experienced a double-digit moderation, declining by 11.84% YoY to print at N106.79 billion, majorly driven by a 51.81% decline in its current accounts interest expense. Consequently, this buoyed the topline performance as net interest income grew by 7.05% to stand at N320.80 billion for the period under review.
Bottom-line recorded a single-digit growth performance
Given the impressive performance recorded in the interest and fee-based income, ZENITH was able to scale up its profitability in the review period, with the PBT surging by 9.58% to N280.37bn. However, a 41.59% hike in Tax expenses moderated the PAT to N244.56bn, its highest ever.
Loans and Advances Book continues to increase
On the back of the increase in the customers’ deposit by 21.20%, the firm was able to ramp up its risk assets, with the loans and advances book rising by 20.75% to N3.36 trillion resulting in an improved (+1.61%) earnings on interest income. Also, the LDR for the review period moderated to 51.85% from 52.04% in FY’21.
EPS improves by 5.99%
Following the single-digit improvement in the bottom-line performance (the PAT increased by 6.07%), the EPS advanced by 5.99% from N7.34 to N7.78.