Zenith Bank Plc held its Half Year (HY) 2021 results presentation to investors and analysts. Below are the facts to the figures;
Interest income declined by 6% YoY due to the prevailing low yield environment which affected yields on some marketable securities.
On the other hand, Interest expense declined by 26% YoY due to rebalancing of deposit mix and the declining yield environment.
Contribution of non-interest income to total revenue increased from 37.3% to 41.0% YoY. This was driven by the growth recorded in fees on electronic products (91%), account maintenance fee (51%) and agency& collection fees (50%).
ROAE declined from 21.5% to 18.8% YoY due to the 15.6% YoY increase in capital base and the slow recovery of the economy.
Cost-to-income ratio increased from 54.4% to 56.1% YoY due to inflationary pressure and regulatory costs.
Capital adequacy and liquidity ratios during the period stood at 22.0% and 69.9% respectively.
Customers’ deposits grew by 8.1% YoY due to increasing confidence in the Zenith brand. The breakdown of the deposit mix showed that demand account contributed the highest (55.2%), followed by Savings (20.4%), Domiciliary (17.5%) and Term (7%)
Gross loans as at the period stood at N2.99trillion. The top four sectors it lent out to are; Upstream Oil and Gas (18.4%), Government (15.9%), General Commerce (13.2%), Other Manufacturing (10.5%).
On the other hand, the sectors that got the least allocation in terms of the disbursement of the gross loans are; Finance and Insurance (0.3%), Education (0.4%), Beverages and Tobacco (2%).
Total customers during the period stood at 13.71 million. (+24.1% YoY).
A total number of 135,463 active POS terminals, 62,341 agents and 2,051 ATM terminals were recorded during the period under review.
In terms of diversity, out of its 7,848 employees, 3936 are female while 3,912 are male employees.
For more information about the Investors presentation, click HERE.