ZENITH BANK PLC
INTERIM REPORT - 30 JUNE 2022
ZENITH BANK PLC
DIRECTORS, OFFICERS AND PROFESSIONAL ADVISERS
DIRECTORS | Jim Ovia, CON. | Chairman |
Prof. Chukuka Enwemeka | Non-Executive Director | |
Mr.Jeffrey Efeyini | Non-Executive Director | |
Mr. Chuks Emma Okoh* | Non-Executive Director | |
Mr.Gabriel Ukpeh | Non-Executive Director/Independent | |
Engr. Mustafa Bello | Non-Executive Director/Independent | |
Dr. Al-Mujtaba Abubakar | Non-Executive Director/Independent | |
Dr. Omobola Ibidapo-Obe Ogunfowora | Non-Executive Director/Independent | |
Mr. Peter Olatunde Bamkole* | Non-Executive Director/Independent | |
Mr.Ebenezer Onyeagwu | Group Managing Director/CEO | |
Dr. Adaora Umeoji | Deputy Managing Director | |
Mr. Umar Shuaib Ahmed | Executive Director | |
Dr. Temitope Fasoranti | Executive Director | |
Mr. Dennis Olisa | Executive Director | |
Mr. Henry Oroh | Executive Director | |
Mrs Adobi Nwapa* | Executive Director | |
Mr. Akindele Ogunranti* | Executive Director | |
*Appointed to the Board effective 12 April 2022 | ||
COMPANY SECRETARY | Michael Osilama Otu | |
REGISTERED OFFICE | Zenith Bank Plc | |
Zenith Heights | ||
Plot 84/87, Ajose Adeogun Street | ||
Victoria Island, Lagos | ||
AUDITORS | PricewaterhouseCoopers (PwC) Professional Services | |
Landmark Towers, 5B Water Corporation Road | ||
Victoria Island | ||
Lagos | ||
REGISTRAR AND TRANSFER OFFICE | Veritas Registrars Limited (formerly Zenith Registrars Limited) | |
Plot 89 A, Ajose Adeogun Street |
Victoria Island
Lagos
1 | Zenith Bank Plc Interim Report - 30 June 2022 |
ZENITH BANK PLC
Index
Note | Page | Note | Page | ||
Directors' Report | 3 | 7 Interest and similar expense | 134 | ||
Statement of Corporate Responsibility for the Financial | 11 | 8 Impairment charge on financial and non-financial | 134 | ||
Statements | instruments | ||||
Corporate Governance Report | 12 | 9 Net income on fee and commission | 135 | ||
Statement of Directors' Responsibilities in Relation to the | 26 | 10 | Other operating income | 135 | |
Financial statements | |||||
Report of the Audit Committee | 27 | 11 | Trading gains | 135 | |
Independent Auditor's/Reviewer's Report | 28 | 12 | Operating expenses | 136 | |
Consolidated and Separate Statement of Profit or Loss and | 33 | 13 | Taxation | 137 | |
Other Comprehensive Income | |||||
Consolidated and Separate Statements of Financial Position | 34 | 14 | Earnings per share (EPS) | 138 | |
Consolidated and Separate Statements of Changes in Equity | 35 | 15 | Cash and balances with central banks | 139 | |
Consolidated and Separate Statements of Cash Flows | 37 | 16 | Treasury bills | 139 | |
Notes to the Interim Consolidated and Separate Financial | 38 | 17 | Assets pledged as collateral | 139 | |
Statements | |||||
18 | Due From Other Banks | 140 | |||
1 General information | 19 | Derivative assets | 141 | ||
2.0a Changes in accounting policies | 39 | 20 | Loans and advances | 141 | |
2.0b | Significant accounting policies | 41 | 21 | Investment Securities | 142 |
2.1 Basis of preparation | 43 | 22a Investment in subsidiaries | 143 | ||
2.2 Basis of Consolidation | 43 | 22b Condensed results of consolidated entities | 144 | ||
2.3 Translation of foreign currencies | 44 | 23 | Investments in associates | 148 | |
2.4 Cash and cash equivalents | 45 | 24 | Deferred tax balances | 149 | |
2.5 Financial instruments | 25 | Other assets | 151 | ||
2.6 Derivative instruments | 49 | 26 | Property and equipment | 153 | |
2.7 Impairment | 49 | 27 | Intangible assets | 158 | |
2.8 Reclassification of financial instruments | 52 | 28 | Customers' deposits | 158 | |
2.9 Restructuring of financial instruments | 52 | 29 | Other liabilities | 159 | |
2.10 | Collateral | 52 | 30 | On-lending facilities | 160 |
2.11 | Property and equipment | 52 | 31 | Borrowings | 162 |
2.12 | Intangible assets | 53 | 32 | Debt Securities issued | 164 |
2.13 | Impairment of non-financial assets | 54 | 33 | Derivative liabilities | 164 |
2.14 | Leases | 54 | 34 | Share capital | 164 |
2.15 | Provisions | 55 | 35 | Share premium, retained earnings and other reserves | 165 |
2.16 | Employee benefits | 55 | 36 | Pension contribution | 166 |
2.17 | Share capital and reserves | 55 | 37 | Personnel expenses | 166 |
2.18 | Recognition of interest income and expense | 56 | 38 | Group subsidiaries and related party transactions | 168 |
2.19 | Fees, commission and other income | 57 | 39 | Contingent liabilities and commitments | 169 |
2.20 | Net trading gains | 57 | 40 | Dividend per share | 170 |
2.21 | Operating expenses | 57 | 41 | Cash and cash equivalents | 1171 |
2.22 | Current and deferred income tax | 58 | 42 | Compliance with banking regulations | 171 |
2.23 | Earnings per share | 59 | 43 | Prudential Adjustments | 172 |
2.24 | Segment reporting | 59 | 44 | Statement of cash flow workings | 173 |
2.25 | Fiduciary activities | 59 | 45 | Comparatives | 177 |
2.25 | Deposit for investment in AGSMEIS | 59 | 46 | Events after the reporting period | 177 |
3 Risk management | 60 | Other National Disclosures | 179 | ||
4 Critical accounting estimate and judgements | 128 | Value Added Statement | 180 | ||
5 Segment Analysis | 129 | Five-Year Financial Summary | 181 | ||
6 Interest and similar income | 134 |
2 | Zenith Bank Plc Interim Report - 30 June 2022 |
ZENITH BANK PLC
Directors' Report for the Period Ended 30 June 2022
The directors present their report on the affairs of ZENITH BANK PLC ("the Bank"), together with the financial statements and the independendt auditor's report for the period ended 30 June 2022.
1. Legal form
The Bank was incorporated in Nigeria under the Companies and Allied Matters Act as a private limited liability company on 30 May,1990. It was granted a banking licence in June 1990, to carry on the business of commercial banking and commenced business on June 16, 1990. The Bank was converted into a Public Limited Liability Company on 20 May 2004. The Bank's shares were listed on the floor of the Nigerian Stock Exchange on 21 October 2004. In August 2015, the Bank was admitted into the premium Board of the Nigerian Stock Exchange. The Bank is also listed on the London Stock Exchange.
There have been no material changes to the nature of the Group's business from the previous period.
2. Principal activities and business review
The principal activity of the Bank is the provision of banking and other financial services to corporate and individual customers. Such services include obtaining deposits from the public, granting of loans and advances, corporate finance and money market activities.
The Bank has six subsidiary companies namely, Zenith Bank (Ghana) Limited, Zenith Pensions Custodian Limited, Zenith Bank (UK) Limited, Zenith Bank (Sierra Leone) Limited, Zenith Bank (The Gambia) Limited and Zenith Nominees Limited. During the period, the Bank opened five new branches and no branch was closed.
As at 30 June 2022 the Group had 445 branches, 211 cash centers; 2,091 ATM terminals; 210,838 POS terminals and 18,766,031 cards issued to its customers. (31 December 2021: 440 branches, 188 cash centers, 2,086 ATM terminals, 163,398 POS terminals and 14,743,191 cards issued).
3. Operating results
Gross earnings of the Group increased by 17.1% and profit before tax increased by 11.1% . Highlights of the Group's operating results for the period under review are as follows
30 June 2022 | 30 June 2021 | |||
N' Million | N' Million | |||
Gross earnings | 404,763 | 345,559 | ||
Profit before tax | 130,005 | 117,059 | ||
Income tax expense | (18,592) | (10,940) | ||
Profit after tax | 111,413 | 106,119 | ||
Non- controlling interest | (83) | (93) | ||
Profit attributable to the equity holders of the parent | 111,330 | 106,026 | ||
Appropriations | ||||
Transfer to statutory reserve | 18,574 | 21,959 | ||
Transfer to credit risk reserve | 20,000 | - | ||
Transfer to retained earnings and other reserves | 92,756 | 84,067 | ||
111,330 | 106,026 | |||
Basic and diluted earnings per share (Naira) | 3.55 | 3.38 | ||
4. Dividends
The Board of Directors, pursuant to the powers vested in it by the provisions of section 426 of the Companies and Allied Matters Act (CAMA 2020) of Nigeria, proposed an interim dividend of N0.30 per share (2021: Interim dividend of N0.30 per share) from the retained earnings account as at 30 June, 2022. This will be presented for ratification by the shareholders at the next Annual General Meeting.
Payment of dividends is subject to witholding tax rate of 10% in the hands of qualified recipients.
3 | Zenith Bank Plc Interim Report - 30 June 2022 |
ZENITH BANK PLC
Directors' Report for the Period Ended 30 June 2022
5. Directors' shareholding
The direct and indirect interests of directors in the issued share capital of Zenith Bank Plc as recorded in the register of directors shareholding and/or as notified by the directors for the purposes of sections 301 and 302 of the Companies and Allied Matters Act (CAMA
2020) and the listing requirements of the Nigerian Stock Exchange is as follows:
Interests in shares
Number of Shareholding | ||||||||
30 June 2022 | 31 December 2021 | |||||||
Director | Designation | Direct | Indirect | Direct | Indirect | |||
Jim Ovia, CON. | Chairman / Non-Executive Director | 3,546,199,395 | 1,528,304,916 | 3,546,199,395 | 1,525,904,916 | |||
Prof. Chukuka Enwemeka | Non-Executive Director | 127,137 | - | 127,137 | - | |||
Mr.Jeffrey Efeyini | Non-Executive Director | 541,690 | - | 541,690 | - | |||
Mr. Chuks Emma Okoh | Non Executive Director * | - | - | - | - | |||
Mr.Gabriel Ukpeh | Non-Executive Director /Independent | 32,660 | - | 32,660 | - | |||
Engr. Mustafa Bello | Non Executive Director / Independent | - | - | - | - | |||
Dr. Al-Mujtaba Abubakar | Non Executive Director / Independent | - | - | - | - | |||
Dr. Omobola Ibidapo-Obe | Non Executive Director / Independent | - | - | - | - | |||
Ogunfowora | ||||||||
Mr. Peter Olatunde Bamkole | Non Executive Director / Independent * | - | - | - | - | |||
Mr.Ebenezer Onyeagwu | Group Managing Director | 80,176,078 | - | 65,062,844 | - | |||
Dr. Adaora Umeoji | Deputy Managing Director | 68,873,169 | 1,710,123 | 68,873,169 | 1,710,123 | |||
Mr. Umar Shuaib Ahmed | Executive Director | 16,075,000 | - | 14,075,000 | - | |||
Dr. Temitope Fasoranti | Executive Director | 11,075,000 | - | 11,075,000 | - | |||
Mr. Dennis Olisa | Executive Director | 16,125,000 | - | 14,125,000 | - | |||
Mr. Henry Oroh | Executive Director | 9,964,127 | - | 9,964,127 | - | |||
Mrs Adobi Nwapa | Executive Director* | 11,008,206 | - | 8,449,206 | - | |||
Mr. Akindele Ogunranti | Executive Director* | 764,005 | - | 764,005 | - | |||
* Appointed to the Board effective 12 April 2022
The indirect holdings relate to the holdings of the director in the underlisted companies:
- Jim Ovia: (Institutional investors Ltd, Lurot Burca Ltd, Jovis Nigeria Ltd, Veritas Registars Ltd, Quantum Zenith Securities Ltd)
- Adaora Umeoji: (Palais Vendome Limited)
6. Directors' Remuneration
The Bank ensures that remuneration paid to its Directors complies with the provisions of the Code of Corporate Governance issued by its regulators.
In compliance with Section 34(5) of the Code of Corporate Governance for Public Companies as issued by Securities and Exchange Commission, the Bank makes disclosure of the remuneration paid to its directors as follows:
4 | Zenith Bank Plc Interim Report - 30 June 2022 |
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Zenith Bank plc published this content on 23 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2022 12:05:02 UTC.