Zenith Bank posts N230bn profit, pays N2.70/share

Zenith Bank has posted its 2020 full year audited financials declaring a dividend of N2.70 for every 50k share held by its shareholders, as it grew its profit after tax by 10.4 per cent to N230.56bn.

The N2.70 dividend payout brings the 2020 total dividend to N3 per share, as the bank recorded earnings per share of N7.34 in 2020, an improvement over N6.65 of 2019.

The financials of the bank released to investors on the Nigerian Stock Exchange showed that despite the increase in its interest income, it was able to cut back on its interest expenses as it gained from other income and trading gains.

The bank had recorded 276 per cent increase in foreign currency revaluation gain, which rose from N11.54bn in 2019 to N43.44bn in 2020, just as gains from trading activities in treasury bills and bonds rose to N121.68bn at the end of the 2020 financial year from N117.79bn in 2019.

Net interest income of the bank for the 2020 financial year stood at N299.68bn compared to N148.53bn in the comparable period of 2019, as impairment loss on financial and non-financial instruments rose to N39.53bn in 2020 from N24.03bn.

Its operating and personnel expenses had, however, risen during the period, as it spent N148.112bn on its operation in 2020 compared to N129.45bn it spent in 2019. The 2020 spending was buoyed by a 107.7 per cent increase in spending on Information Technology.

The bank doubled investment in IT in 2020 to N20.44bn from N9.84bn it spent in 2019.

Key indicators

Interest income up 1.2% to N420.81bn (2019: N415.56bn)

Interest expense down 18.4% to N121.13bn (2019: N148.53bn)

PAT increased by 10.4% to N230.56bn (2019: N208.84bn)

Total assets increased by 33.7% to N8.48tn (2019: N6.34tn)

Loans and advances to customers up 20.4% to N2.77tn (2019: N2.30tn)

Customer deposits up 25.1% to N5.33tn (2019: N4.26tn)

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