Zenith Bank’s gross earnings hit N696.5bn
Zenith Bank Plc yesterday announced its gross earnings for the year ended December 31, 2020, rose by 5per cent to N696.5 billion from N662.3 billion reported in the previous year.
This was in spite of a challenging macroeconomic environment exacerbated by the COVID 19 pandemic.
According to the bank’s audited financial results for the 2020 financial year presented to the Nigeria Stock Exchange (NSE) on Tuesday, the Group recorded 8 per cent growth in non-interest income from NGN232.1 billion in 2019 to NGN251.7 billion in 2020 and a 1 per cent increase in interest income from NGN415.6 billion in 2019 to NGN420.8 billion in 2020.
Profit before tax also increased by 5per cent, growing from N243.3 billion to N255.9 billion in the current year.
The increase arose from a combination of growth in the topline and a significant reduction in interest expense.
Interest expense reduced from N148.5 billion in 2019 to N121.1 billion in 2020, significantly increasing the net interest income from NGN267.0 billion in 2019 to NGN299.7 billion in 2020.
The Group’s increased retail activities translated to a corresponding increase in retail deposits and loans.
Thus, retail deposits grew by NGN612.7 billion from NGN1.11 trillion to NGN1.72 trillion year-on-year (YoY), while savings balances significantly grew by 88percent YoY and closed at NGN1.16 trillion.
- This retail drive, coupled with the low-interest yield environment, helped reduce the cost of…