Zenith Bank Ghana, The Banker magazine’s Best Bank in Ghana 2014, has crowned a prolific operating year by posting a profit before tax of more than GH¢200 million in 2014.
This represents a growth of 86 per cent over the 2013 pre-tax earnings of GH¢107.7 million.
The bank, which is often the first to kick-start the earnings reporting season, had its net interest income surging by 98 per cent to GH¢261.9 million from GH¢132.5 million during the period. This was partly the result of a 62 per cent increase in the value of outstanding loans to customers, which rose from GH¢676.8 million to GH¢1.1 billion.
Fees and commission income improved by 66 per cent to GH¢63.7 million, while net trading and other operating income remained strong. Total operating income registered 76 per cent growth to GH¢357.9 million from GH¢203.8 million in 2013.
After-tax profit rose by 87 per cent to GH¢137.4 million, boosting the bank’s return on equity to 39.1 per cent from 30.2 per cent. Quite remarkably, the cost-to-income ratio stabilised at 40.7 per cent.
“This is yet another sterling performance on top of our record-setting 2013 results,” Mr Daniel Asiedu, Managing Director/Chief Executive Officer of the bank. “The results underline the success of our strategy and the value of our brand, which together make us one of the strongest banks in the industry.”
Being able to maintain rapid growth in a highly competitive environment where the economic risks have risen in recent years says much about Zenith’s underlying strength as a business, Mr Asiedu said.
“It also tells our customers that we will continue to reinforce our financial strength in order to serve them better, while our shareholders can be assured that we’ll always pursue optimal value for their investments,” he indicated.
On balance sheet metrics, Zenith’s assets expanded by 60 per cent to GH₵3.1 billion from GH₵1.9 billion in 2013, while customer deposits grew by 73 per cent to GH₵1.8 billion from GH₵1.1 billion.
The bank’s non-performing loans ratio inched up slightly to 6.9 per cent from 4.7 per cent, but remained below the industry average of more than 12 per cent.
As it enters its 10th year of operation, Zenith Bank Ghana is clearly now the czar of innovation in the Ghanaian banking industry and continues to distinguish itself through high service quality and the ability to deliver a unique customer experience.
Indeed, the bank’s hallmark of excellent and unrivalled customer service is demonstrated practically in each of its 29 business locations nationwide, culminating in it winning the Best Bank—Customer Care at the 2014 Ghana Banking Awards. As this award was based on a survey of customers of all banks, it proved unequivocally that Zenith Bank’s customers are the most satisfied in the industry. Zenith was also voted the First Runner-up—Best Growing Bank on a log of 27 banks in recognition of its amazing run of growth over the years.
Arguably its biggest achievement of 2014 was being named the ‘Bank of the Year 2014’ in Ghana by The Banker magazine at its annual Bank of the Year Awards in the UK, regarded as the Oscars in the global banking industry.
Zenith Bank was honoured for delivering decent shareholder returns and meeting customer expectations through competitive products and services. These include a potpourri of electronic cards and payment platforms, specially designed loan products for different customer constituencies and third-party payment services with various service providers, including eight domestic and international airlines.
Mr Asiedu said customers deserved praise for aiding Zenith’s success through their loyalty and added that the bank would remain a leader in all facets of banking in 2015 to enhance the satisfaction of its customers.
Zenith Bank Ghana is a subsidiary of Zenith Bank Plc of Nigeria, West Africa’s number one bank, according to The Banker magazine. Zenith’s parent company is also one of the world’s top 300 banks and sixth in Africa. It is listed in Nigeria and the UK with subsidiaries in Ghana, The Gambia and Sierra Leone, as well as representative offices in China and South Africa.