Zenith Bank Plc records profit of after tax of N244.5 bn in 2021 financial year

… Announces dividend payment of N2.80 kobo for shareholders

Zenith Bank Plc recorded a profit after tax (PAT) of N244.5billion last financial year, according its 2021 full-year audited financial statement released by the bank. This represents a 6.07% increase year on year.

The report revealed  that the  bank also reported earnings per share of N7.79 6% 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% 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% to N320.8 billion.

However, a 51.6% 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% to N103.9 billion year on year. It also raked in N167.4 billion in net trading income representing a 37.6% increase year on year.

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

Zenith Bank Plc last traded at N27.10 per share and its market capitalization 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%.

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%.

Zenith Bank Plc has announced a final dividend of N2.80 kobo per 50 kobo ordinary share for the financial year ended December 2021.

This takes the total dividend to N3.10 kobo, made up of the interim dividend of N0.30 per share which was paid on the 20th of September 2021, and a final dividend of N2.80 per ordinary share, yet to be approved by shareholders of the company.

The dividend is subject to appropriate withholding tax and approval by shareholders, with a qualification date of March 25th, 2022.

On Wednesday, April 6, 2022, the dividend which amounts to N87.91 billion will be disbursed electronically to ordinary shareholders whose names appear on the Register of Members as at Friday, March 25th 2022, and who have completed the e-dividend registration and mandated their Registrar to pay their dividends directly into their bank accounts.

The company’s registrar is Veritas Registrars Limited and the e-dividend mandate form can be downloaded or filled online on the registrar’s website.

Zenith Bank Plc has 31,396,493,786 outstanding shares and a market capitalization of N850.84 billion as at the time of filing this report. The bank’s shares opened trading on 28th of February, 2022 at N26.95 per share and closed at N27.10 per share.

Zenith Bank Plc had earlier released its Full Year 2021 financial results for the period ended 31 December, 2021.

Interest Income appreciated by 7.05% from N420.81 billion to N427.60 billion in the current period.

In the same vein, profit after tax of N244.56 billion, from N230.57 billion in the corresponding period of 2020, reflecting a 6.07% increase Y-o-Y, just as Earnings per share was recorded as N7.78 against N7.34 recorded in the corresponding period of 2020.

Year-to-date, the company’s shares have improved by 7.75% from N25.15 at the beginning of the year to N27.10 as at the time of writing this report.