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.