Zenith Bank reports  profit of N244.5bn in 2021

Zenith Bank Plc on Monday 28th of February reported its 2021 full-year audited financial statement reporting a profit after tax of N244.5 billion the highest on record. This reflects a 6.07 per cent increase year on year.

The bank also reported earnings per share of N7.79 6 per cent higher than the N7.34 reported a year earlier. Zenith Bank has now grown its earnings per share every year since 2016. It has now taken Zenith Bank about 6 years to double its profits after first hitting N124 billion in profits in 2016.

The statement revealed a 7.05 per cent growth in Interest Income from N420.81 billion to N427.60 billion in the current period. Zenith Bank’s profit performance is on the back of an impressive all margin growth as income from interest and trading income all rose year on year.

Net Interest income which it earns from its lending business rose 7 per cent to N320.8 billion.

However, a 51.6 per cent spike in loan losses meant net interest after impairments was flat at just N260.8 billion.

Zenith Bank, however, made up for it with income from commission and fees rising 31 per cent to N103.9 billion year on year. It also raked in N167.4 billion in net trading income representing a 37.6 per cent increase year on year.

Zenith Bank also grew its deposits by a whopping 21.2 per cent to N6.4 trillion while its total assets is now N9.4 trillion. Net assets rose 14.4 per cent to N1.27 trillion.

Zenith Bank Plc last traded at N27.10 per share and its market capitalisation 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 per cent.

The bank has proposed a dividend per share of N2.8 per share up from N2.7 per share a year ago. Based on its current share price, Zenith Bank’s dividend yield is about 10 per cent.