Zenith Bank Ghana for the period between end-December 2019 and end-December 2020, reduced its Non-Performing Loans (NPLs) as a percentage of gross loans by 10.3 percentage points.
NPLs end-2020 according the bank’s 2020 Audited Financial Statements, stood at 6.15 percent from a previous 16.49 percentage points significantly improving the bank’s loan asset quality.
The bank’s loan loss provision was also reduced by 1.54 percent from 4.81 percent end-2019 to 3.27 percent end-2020.
The reduction in the bank’s NPLs reflects effective strategies adopted to recover bad loans.
In terms of assets value growth, Zenith Bank grew its total assets value by some Ghs 1.34 billion. Total assets end-2020 stood at Ghs 8.03 billion as against some Ghs 6.69 billion recorded in 2019.
An examination of the bank’s financial statements reveal that increments in items such as cash and cash equivalent, investments, and loans and advances to customers accounted for the surge in assets value.
Despite the growth in assets and reduction in the NPLs, total liabilities for the period under review also grew by some Ghs 1 billion.
Total liabilities by the end of December 31, 2020 stood at Ghs 6.5 billion from a previous figure of Ghs 5.5 billion.
With regards to profits made for the year 2020, Zenith Bank recorded marginal growth in its profit margins as its profit grew from Ghs 246 million in 2019 to Ghs 338 million 2020.
Dividends allotted to shareholders by Zenith Bank for the year 2020 on the back of the marginal growth in profit is Ghs 0.08 pesewas, a 0.02 pesewas increment over that paid shareholders in 2019.
