#12021 FULL YEAR REPORT Presentation to Investors & Analysts PEOPLE TECHNOLOGY | SERVICE Z ZENITH#2Operating Environment & Non-financial Highlights Pages 04-10 Group Results Pages 11-25 Agenda Risk Management Pages 26-31 Business Segments Performance & Subsidiary Review Pages 33-37 Strategy, Outlook & Guidance Pages 39-41 © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts#3Disclaimer This presentation is based on the consolidated financial statements of Zenith Bank Plc, a company incorporated in Nigeria on 30 May 1990, and its subsidiaries (hereinafter collectively referred to as "the Group"). The financial statements are prepared in accordance with the International Financial Reporting Standard (IFRS), and the going concern principle under the historical cost convention as modified by the measurement of certain financial instruments held at fair value. The preparation of financial statements in accordance with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosures at the date of the financial statements. Although these estimates are based on the Directors' best knowledge of current events and actions, actual results may differ from those estimates. © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 3#4Operating Environment & Non- financial Highlights: © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts#5Nigerian Economy and Key Developments in the Banking Sector GDP Growth Rate 5.01% 4.03% 3.98% 0.51% 03/20 -3.62% Q4'20 0.11% Q1'21 Q2 '21 Q3 '21 Q4'21 -6.10% Real GDP Growth: Nigeria's real GDP grew by 3.98% y/y in Q4 2021, showing a sustained positive growth for the fifth quarter since the 2020 recession. However, it was 0.05% lower than the 4.03% growth recorded in Q3 2021. ■ The oil sector contracted by 8.06% y/y and contributed 5.19% to total real GDP in Q4 2021 while the non-oil sector grew by 4.73% and contributed the balance of 94.81%. The growth in non-oil sector was driven mainly by growth in Agriculture (Crop Production); Information and Communication (Telecommunication), Trade, and Financial and Insurance (Financial Institutions). Headline Inflation: ☐ Headline inflation declined marginally to 15.60% y/y in Jan'22 from 15.63% y/y recorded in Dec'21. Over the same period, food inflation declined by 24 bps to close at 17.13% y/y while core inflation came in flat at 13.87% y/y. Oil Production & Price: OPEC average monthly basket price increased by 0.68% in the 4th quarter of 2021, from $73.9/bbl recorded in Sept'21 to $74.4/bbl recorded in Dec'21. The average monthly basket price rose further to $85.4/bbl in Jan'22 while the current daily price stands at $112.2/bbl as at 2nd March 2022. Q2'20 Inflation Rate 16.63% 15.99% 17.38% 15.40% 15.63% 15.60% 17.01% Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 ☐ Nigeria recorded an average daily oil production of 1.50 mbpd in Q4 2021, a decrease of 0.07 mbpd from 1.57 mbpd recorded in Q3 2021. Foreign Reserves: Foreign Reserves / Oil Price ■ Nigerian foreign reserves increased by 10.1% QoQ from $36.8bn recorded at the end of Q3 2021 to $40.5bn recorded at the end of Q4 2021. The foreign reserves currently stands at $39.9bn as at 28th Febuary 2022. Exchange Rate: As at 2021 FYE, the local currency (NGN) had depreciated by about 6% YoY against the USD. NAFEX (I&E) window exchange rate (NGN/USD) as at 2021 FYE- 424.11 (2020 FYE NAFEX-400.30). Cash Reserve Ratio (CRR) & Monetary Policy Rate (MPR): The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) voted to retain all existing monetary policy rates all through the year 2021. Cash Reserve Ratio (CRR) - 27.5%; Monetary Policy Rate (MPR) - 11.5%; and Liquidity Ratio - 30%. 82.1 85.4 80.4 73.9 74.4 73.5 70.3 40.0 41.8 41.2 40.5 34.0 36.8 33.4 Jul-21 Aug-21 Sep-21 Oct-21 Av Monthly Basket Price of Crude (US$/bbl) Source: National Bureau of Statistics, Central Bank of Nigeria, OPEC Nov-21 Dec-21 Jan-22 - Foreign Reserves (US$Bn) © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 5#6Nigerian Economy and Key Developments in the Banking Sector • Launch of new forex repatriation scheme "Race to US$200 billion in FX Repatriation (RT200FX) Program". It is a set of policies and program issued to enable Nigeria achieve the goal of US$200 billion in FX repatriation over the next 3-5 years via non-oil exports revenue. Implementation of Basel III Reporting Guidelines for Banks commenced in November 2021. This will run parallel to the existing Basel II for an initial period of six months. • The e-Naira is gaining traction with circa 700,000 downloads globally as at 28th January, 2021. Launched 25th October, 2021. • Launch of NIPOST e-debit card and banking platform to further contribute to financial literacy and inclusion of the Nigerian populace. • The 10-year tax exemption period on some government securities expired on 2 January 2022. • The new Petroleum Industry Act expected to bring respite to oil producing host communities, reduce incidence of youth restiveness and pipeline vandalization, improve efficiency and increase government revenue. • Commencement of Road Infrastructure Credit Scheme is expected improve infrastructure development across the country. ⚫ LIBOR transition to Secured Overnight Financing Rate (SOFR) commenced on 31 December 2021. © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 6#7Our Investment Proposition Market dominance in both corporate and retail space, formidable capital and liquidity buffer, strengthened ERM practices and excellent value creation for shareholders. A dominant player in the Nigerian Banking Industry: ■ Controls a significant share of the high-end corporate clients in all sectors of the Nigerian economy. ■ The bank uses its strong balance sheet and liquidity as well as efficient trade finance processes and services to continuously grow and support its customers. Thriving in the retail and digital space: ■ Continues to attract and grow its share of retail customers and retail business in the market. Strong Focus on Risk Management: ■ NPL ratio came in at 4.2% with a coverage ratio of 114.4%. The Group will continue to implement robust risk management practices and maintain the lowest possible NPL ratio. Credit Rating: Constrained by Sovereign Ratings ■ Standard and Poor's ratings for Zenith Bank are: B-/Stable/B (Issuer Credit Rating) and ngBBB/ngA-2 (National Scale Rating). ■ Fitch ratings are: 1) Long-term foreign currency IDR: 'B' - stable outlook; 2)Short-term foreign currency IDR: 'B'; 3)National Long-term rating: 'AA-(nga)'; 4) National Short-term rating: 'F1+(nga)'. ☐ Moody's ratings: 1) Long Term Debt - B2 with Stable Outlook; 2) Long Term Deposit - B2 with Stable Outlook Consistent and Growing Dividend Payout: N/share Good and growing dividend payout to its investors. 1.80 2.02 72% growth btw 2015 & 2021 2.70 3.00 2.80 2.80 3.10 2015 2016 2017 2018 2019 2020 2021 © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 7#8QR Banking 回 ZENITH QR BANKING N ZENITH ☐ SCAN ME Account Opening | Mobile Banking | Virtual Card | Scan to Pay | BVN Update | eToken Zenith Intelligent Virtual Assistant (ZIVA) | Account Reactivation | Dispense Error Resolution (ATM, POS & Web) Hardware Token Unlock/Reset | Zenith Trade Portal | NXP Processing (CBN) | Form M Processing (CBN) © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 8#9Non-financial Highlights FYE 2021 FYE 2020 PERCENTAGE GROWTH Number of Customers Number of 18,698,586 13,125,135 42% Cards Issued 14,743,191 10,985,869 34% B Number of active 163,398 89,636 82% POS Terminals ON-BOARDING CHANNELS ZIVA USSD (*966*0*#) Zenith Mobile App www.zenithbank.com Zenith Bank ATMs Zenith Bank Branches Agents 75,827 42,992 76% Zenith Bank Agents Number of 2,086 2,044 2% ATM Terminals Number of Branches 441 440 0% SHARE HOLDINGS Number of Shareholders 643,965 PRODUCT INNOVATIONS QR Solutions Virtual Debit Card ZIVA on WhatsApp (07040004422) SOCIAL MEDIA FOLLOWING 6,248,247 528,784 1,362,708 Emergency USSD Code (+966*911#) Biometric ATM operations in 182,781 27,667,969 (views) © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 9#10Non-financial Highlights Social Impact/CSR Awards State Governments' Security Funds And Infrastructure Private Sector Health Alliance Project Construction of Radiology and Orthopedic Centre The Nigerian Law School University of Lagos Sponsorship: 2021 Microsoft Office Specialist World Championship . Zenith Bank Delta State Principal's Cup Zenith Bank Headmasters' Cup Zenith Bank Next Gen Tennis Championship. . • • • • . • • • Most Valuable Banking Brand in Nigeria 2021 - The Banker. Number One Bank in Nigeria by Tier-1 Capital 2021 - The Banker. Best Bank in Nigeria 2021 - Global Finance Magazine. Best Corporate Governance 'Financial Services' Africa 2021 - Ethical Boardroom. Best Commercial Bank in Nigeria 2021 - World Finance Most Responsible Organisation in Africa 2021 - SERAS Awards Best Company in Infrastructure Development 2021 - SERAS Awards Best Company in Reporting and Transparency 2021 - SERAS Awards Best Company in Promotion of Gender Equality and Women Empowerment 2021 - SERAS Awards Best Bank in Retail Banking 2021 - Businessday Awards © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 10#1100000 70000 Group Results 1219 © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts#12Financial Highlights – FYE 2021 Income Statement Balance Sheet Gross earnings: N765.6Bn Customers' deposits: N6.47Tn +21% YoY +10% YoY Net-interest income: Gross loans: N+3.50Tn +20% YoY N320.8Bn +7% YOY Non-interest income: N309.0Bn +23% YoY Total assets: N9.45Tn +11% YoY Profit before tax: N280.4Bn +10% YoY Total shareholders' funds: 1.28Tn +15% YoY Profit after tax: N244.6Bn +6% YOY © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 12#13- Financial Highlights – FYE 2021 Contd. Key Ratios Earnings per share (EPS) Return on average equity (ROAE) Return on average assets (ROAA) Net interest margin - NIM Cost of funds Cost of risk Cost-to-income ratio 31-Dec-21 31-Dec-20 % change N7.78 N7.34 6% 20.4% 22.4% (9%) 2.7% 3.1% (12%) 6.7% 7.9% (15%) 1.5% 2.1% (28%) 1.9% 1.5% 27% 50.8% 50.0% 2% Liquidity ratio (Group) 71.6% 66.2% 8% Liquidity ratio (Bank) 61.9% 62.5% (1%) Loan-to-deposit ratio (Group) 54.1% 54.7% (1%) Loan-to-deposit ratio (Bank) 62.6% 64.5% (3%) Capital adequacy ratio (CAR) 21.0% 23.0% (9%) Non-performing loan ratio (NPL) Coverage ratio 4.2% 4.3% (2%) 114.4% 113.9% 0% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 13#14Profit or Loss Statement Strong bottom line, boosted by strong growth in fees & commission income, trading income and reduction in funding cost. Group Group YOY (N'million) 2021 Gross earnings Interest and similar income 765,558 2020 696,450 Change 10% 427,597 420,813 2% Interest and similar expense (106,793) (121,131) (12%) Net interest income 320,804 299,682 7% Impairment charge (59,932) (39,534) 52% Net interest income after impairment charge 260,872 260,148 0% Net income on fees and commission 103,958 79,332 31% Trading gains 167,483 121,678 38% Other operating income 37,594 50,735 (26%) Amortisation of intangible assets (3,779) (3,537) 7% Depreciation of property and equipment (25,305) (25,125) 1% Personnel expenses (79,885) (79,520) 1% Operating expenses (180,564) (147,850) 22% Profit before income tax 280,374 255,861 10% Income tax expense (35,816) (25,296) 42% Profit after tax 244,558 230,565 6% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 14#15Consolidating Earnings and Profitability 280 256 243 232 204 Zenith Group continues to deliver attractive earnings profile, supported by robust revenue base. PBT (N'Bn) ■ PBT increased by 10% YoY from N255.9bn in 2020 to N280.3bn in 2021 as the Group continues to strengthen its non-interest revenue base. ■ ROAE declined from 22.4% in 2020 to 20.4% in 2021 as a result of the stronger capital base. ■ ROAA declined from 3.1% in 2020 to 2.7% in 2021 due to the significant growth in balance sheet. 2017 2018 2019 2020 2021 ROAA & ROAE 22.9% 23.8% 23.8% 22.4% 20.4% חתנת 3.4% 3.1% 2.7% 3.4% 3.3% 2017 2018 2019 2020 2021 ROAA ROAE © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 15#16Consolidating Earnings and Profitability Contd. ■ Net Interest Margin - NIM contracted from 7.9% in 2020 to 6.7% in 2021 due to lower yields on HTM investment securities. Cost of Funds & Net Interest Margin 8.9% 8.9% 8.2% 7.9% 6.7% ■ Cost of Funds declined to 1.5% in 2021 from 2.1% recorded in 2020 as a result of strategic rebalancing of our funding base. 5.2% JJJJJ 3.1% 3.0% 2.1% 1.5% 2017 2018 2019 2020 2021 ■ Cost-to-Income Ratio increased marginally from 50.0% in 2020 to 50.8% recorded in 2021 due to inflationary pressures, exchange rate movement and heightened. regulatory costs. Cost to Income Ratio 52.8% 49.3% 50.8% 48.8% 50.0% 2017 2018 2019 2020 2021 © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 16#17Evolution of Revenue Base % to Total % to Total Contribution of non- interest income to total revenue increased from 39.6% in FYE 2020 to 44.1% in FYE 2021. N'million Interest income 2021 2020 YoY Revenue Revenue 427,597 55.9% 420,813 60.4% 1.6% Trading income 167,483 21.9% 121,678 17.5% 37.6% Fees and commissions income 132,884 17.4% 103,224 14.8% 28.7% Other operating Income 37,594 4.9% Non Interest Income 337,961 44.1% 50,735 275,637 7.3% -25.9% 39.6% 22.6% Total Revenue 765,558 100.0% 696,450 100.0% 9.9% Share of Total Revenue #745Bn N630Bn N662Bn N696Bn N765Bn 3% 2% 2% 7% 5% 12% 15% 17% 15% 17% 21% 13% 18% 18% 22% 64% 70% 63% 60% 56% 2017 2018 2019 2020 2021 Interest income Trading income Fees & commission income Other operating income © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 17#18Revenue Base: Interest Income Lines Interest income increased by 2% YoY, driven mainly by the expansion in loan books. Interest Income FYE 2020 FYE 2021 N'million 2021 2020 YOY Placement Loans and advances 292,224 250,812 17% with banks & Government Government discount houses Treasury bills 40,426 53,797 -25% and other bonds Government and other and other 1.6% bonds Others 0.4% 86,669 81,511 6% bonds 19.4% Placement with banks & 20.3% 6,766 26,398 -74% discount houses Others Treasury bills 9.5% Total 1,512 427,597 8,295 -82% 420,813 2% Treasury bills 12.8% Loans and advances 68.3% Placement with banks & discount houses 6.3% Loans and advances 59.6% Others 1.9% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 18#19Revenue Base: Non-Interest Income (NII) Diversification Non-interest income increased by 23% YoY as impressive growths were recorded across almost all lines of income. 2021 N'million Fees on electronic products 2021 2020 YOY 2020 37,470 27,078 38% Fees on electronic Credit related Account maintenance fee/COT 33,003 24,479 35% fees products Credit related fees 18,054 13,913 30% 5.3% Other 11.1% Account maintenance Financial guarantee 8,894 operating income fee/COT Agency & collection services 14,057 12,472 6,802 31% 13% 9.8% 11.1% FX transaction fee 3,298 2,135 54% Other operating income Credit related fees 5.0% Fees on Account electronic maintenance products fee/COT 9.8% 8.9% Foreign withdrawal charges 9,129 8,061 13% 18.4% Trading Asset Asset management fee 8,276 7,612 9% Income 49.6% management Other fees & commissions 703 672 5% fee 2.4% Total fee & commission income 132,884 103,224 29% Financial guarantee 2.6% FX transaction fee 1.0% Foreign withdrawal charges 2.7% Fees and commission expense (28,926) (23,892) 21% Net fee & commission income 103,958 79,332 31% Trading Agency & Other fees & Trading Income collection commissions 0.2% services Other operating income 4.2% Net non-interest income 167,483 37,594 309,035 121,678 38% -26% 50,735 Income 44.1% Asset management fee 2.8% Foreign withdrawal charges 2.9% Agency & collection services 4.5% 251,745 23% Other fees & commissions 0.2% Financial guarantee 2.5% FX transaction fee 0.8% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 19#20Interest Expense: Funding Cost Optimization Interest Expenses 2021 Time deposits 27.5% Current accounts 9.1% 2020 Borrowed funds and Savings accounts 15.6% • Interest expense declined by 12% YoY as a result of the strategic rebalancing of our funding base. N'million 2021 2020 YOY lease 47.8% Current accounts 9,758 29,657 -67% Savings accounts 16,653 22,130 -25% Time deposits 24.2% Current accounts Time deposits 29,377 29,274 0% Borrowed funds and lease 51,005 40,070 27% 24.5% Total 106,793 121,131 -12% Borrowed funds and lease 33.1% Savings accounts 18.3% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 20#21Continuous Efforts Towards Cost Optimisation. Total operating expense grew by 13% YoY due to inflationary pressures, exchange rate movement and heightened regulatory costs. Total Operating Expenses N'million 2021 2020 YOY 2021 2020 NDIC Security & cash Personnel expenses 79,885 79,520 0% Fuel & handling 1.6% Depreciation & Depreciation & Premium armortisation 5.6% 29,084 28,662 1% maintenance Outsourcing armortisation 11.2% Personnel 7.1% Travel & services 5.1% NDIC Premium 17,273 Advertisement hotel & promotions AMCON premium Training & development 37,920 14,405 20% 30,948 23% expenses 31.0% 1,588 0.9% 4.1% Information technology Other Advertisement & Information expenses 11,798 11,835 0% 1,191 33% 28,716 20,440 40% Other expenses 13.3% technology promotions 14.2% 9.9% Fuel & maintenance 20,618 17,778 16% Outsourcing Security & cash handling Travel & hotel 4,766 3,980 20% 2,628 1,883 40% services 4.5% Training & development 0.5% Personnel AMCON premium 12.1% Training & development 0.5% Information technology Outsourcing services 14,773 11,500 expenses 27.4% Other expenses Total 40,484 289,533 28% 33,890 19% 256,032 13% AMCON premium 13.1% NDIC armortisation 10.0% Premium 6.0% Depreciation & Travel & hotel 0.7% Security & cash handling 1.6% 8.0% Advertisement & promotions 4.6% Fuel & maintenance 6.9% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 21#22• Balance Sheet - Assets Robust balance sheet - well positioned for growth opportunities as the economy continues to recover. Group Group YOY (N'million) Dec 21 Dec 20 Change Cash and balances with central bank 1,488,363 1,591,768 (7% )Treasury bills 1,764,945 1,577,875 12% Assets pledged as collateral 392,594 298,530 32% Due from other banks 691,244 810,494 (15%) Derivative assets Loans and advances Investment securities Deferred tax assets Other assets Property and equipment Intangible assets Total Assets 56,187 44,496 26% 3,355,728 2,779,027 21% 1,303,726 996,916 31% 1,837 5,787 (68%) 168,210 169,967 (1%) 200,008 190,170 5% 25,001 16,243 54% 9,447,843 8,481,273 11% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 22#23Balance Sheet - Liabilities & Equity Assets are largely funded by deposits with a strong capital base providing buffer for further growth. (N'million) Group Group YOY Liabilities Dec-21 Dec-20 Change Customers deposits 6,472,054 5,339,911 21% Derivative liabilities 14,674 11,076 33% Current income tax payable 16,909 11,690 45% Deferred income tax liabilities 11,603 1 Other liabilities 487,432 703,292 (31%) On-lending facilities 369,241 384,573 (4%) Borrowings 750,469 870,080 (14%) Debt securities issued 45,799 43,177 6% 8,168,181 7,363,800 11% Total liabilities Equities and reserves Share capital Share premium Retained earnings Other reserves Non-controlling interest Total Shareholders' equity 15,698 15,698 0% 255,047 255,047 0% 607,203 521,293 16% 400,570 324,461 23% 1,144 974 17% 1,279,662 1,117,473 15% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 23#24N'bn N'bn Sustained Assets & Liabilities Match • The 21% growth in customers' deposits in 2021 is a reflection of the increasing confidence in the Zenith brand. Gross loans grew 20% YoY propelled by both corporate and retail lending activities. Gross Loans 2,252 2,017 3,502 FYE 2021 2,919 2,462 2017 2018 2019 2020 2021 Loans & Advances FYE 2020 On-lending facilities 15.4% Overdrafts On- lending facilities Overdrafts 8.2% 12.6% 18.1% Deposits 6,472 FYE 2021 5,340 4,262 3,690 3,438 2017 2018 2019 2020 2021 Domicilliary 19.4% Term 7.0% Savings 19.1% Term loans 72.0% Deposit Mix FYE 2020 Domicilliary 16.4% Term 6.1% Demand 54.6% Savings 21.6% Term loans 73.6% Demand 55.9% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 24#25Continued Market Dominance - Strong Liquid Asset Base & Funding Mix High quality balance sheet with diversified funding sources. Liquid Assets FYE 2021 FYE 2020 N'million Debt securities 31.8% Cash Due from other banks Operating accounts with CBN 2021 84,077 73,389 2020 YOY 18.0% Treasury bills 1,764,945 75,802 1,577,875 12% 104,544 -20% -3% Due from Debt securities 26.3% other banks 23.3% Debt securities 1,218,152 Due from other banks Treasury bills Operating accounts with Cash Total 691,244 3,831,807 916,941 33% 810,494 -15% 3,485,656 10% _Cash Treasury bills Operating 3.0% 46.1% CBN 1.9% 2.2% 45.3% Total CRR balance: N1.33 Trillion (2020: N1.41 trillion) accounts with CBN 2.2% Funding Mix FYE 2021 FYE 2020 Debt Securities Equity 14.4% N'million 2021 2020 YOY Debt Securities Issued 0.5% Customers' deposits 6,472,054 5,339,911 21% Issued 0.6% Equity 14.4% On-lending facilities 369,241 Borrowings 8.4% Borrowings 750,469 Debt securities issued On- lending facilities Equity 45,799 1,279,662 4.1% Customers' deposits 72.6% Total 8,917,225 384,573 870,080 -14% 43,177 6% 1,117,473 15% 7,755,214 15% -4% Borrowings 11.2% On-. lending facilities 5.0% Customers' deposits 68.9% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 25#26Risk Management © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts#27Healthy Risk Assets Portfolio NPL Coverage Ratio NPL Ratio 143.4% 192.4% 148.2% 113.9% 114.4% 2017 2018 2019 2020 2021 5.0% 4.7% 4.3% 4.3% 4.2% 2017 2018 2019 2020 2021 Our Risk Management Strategy ■ The Group adopts a complete and integrated approach to risk management that is driven from the Board level to the operational activities of the bank. ■ Risk management is practiced as a collective responsibility coordinated by the risk control units and is properly segregated from the market facing units to assure independence. ■ The process is governed by well defined policies and procedures that are subjected to continuous review and are clearly communicated across the group. ■ There is a regular scan of the environment for threats and opportunities to improve industry knowledge and information that drives decision making. ■ The group maintains a proactive approach to business and ensures an appropriate balance in its risk and reward objectives. ■ Risk culture is continuously being entrenched through appropriate training and acculturation. © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 27#28Focused Risk Management via Portfolio Diversification . Well diversified loan portfolio across sectors supports asset quality. Loans by Sector - FYE 2021 Finance and Insurance 1.0% Government. 14.5% Cement Manufacturing 5.9% Downstream. Oil & Gas 4.7% Food and Agro- processing Flour Mills Loans by Sector - FYE 2020 2.8% Communication 1.7% Finance and Flour Mills 3.7% Communication 4.1% Transportation Real Estate and Construction 3.1% Transportation 5.0% Insurance 0.4% Real Estate and Construction 4.3% 5.8% Power 2.5% Power 1.9% Government. 14.8% Other Manufacturing 11.0% Cement Manufacturing Upstreams Oil & Gas 18.3% 4.1% Downstream Oil & Gas 6.9% Other Manufacturing 9.8% Upstreams Oil & Gas 18.2% 2.3% Consumer. Credit 5.7% 13.7% General Commerce and Tobbaco 1.5% Beverages Agriculture 6.5% Education 0.3% Food and Agro- processing 2.1% Consumer Credit 4.2% General Commerce 10.9% Beverages and Tobbaco 1.6% Education 0.4% Agriculture 6.2% Gross Loans - N3.50 Trillion Gross Loans - 2.92 Trillion © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 28#29NPL by Sectors FYE 2021 Education 0.30% Communication 22.03% General Commerce Transportation 22.75% Agriculture 4.35% FYE 2020 Education 1.27% Oil and Gas 34.18% Communication 24.27% Manufacturing 2.10% Consumer Credit 8.00% 0.55% Power 0.09% Finance & Real Estate and Government Insurance 0.08% 0.56% Construction 5.00% Total NPLs - N146.8 Billion NPL Ratio 4.19% General Commerce Transportation 0.08% Power 0.47% Government 0.11% 24.70% Agriculture 4.44% Oil and Gas 29.87% Consumer Credit 6.27% Manufacturing 3.90% Real Estate and Construction Finance & Insurance 4.36% 0.27% Total NPLs - N125.2 Billion NPL Ratio -4.29% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 29#30Foreign Currency Loans & Restructured Loans Foreign Currency Loans FYE 2021 Cumulative Restructured Loans FYE 2021 % to % to Restructured % to % to USD loans by sector US$' m N'm US$ loans Gross Oil and gas 1,457 Manufctg 617,918 49.1% loans Others 21.9% 17.6% Oil and gas 49.1% Loans by sector Oil and gas N'm Restructured Gross Public Others loans loans 14.7% 4.0% 531,221 77.8% 15.2% Power Manufctg 5,974 0.9% 776 328,996 26.1% 9.4% Power Power 17,866 0.2% 2.6% 2.6% 0.5% 2.8% Manufac Power 84 35,589 2.8% 1.0% Others 651 276,102 21.9% 7.9% Public Others 100,508 27,099 14.7% 2.9% turing Oil and 4.0% 0.8% 0.9% Total US$ loans 2,968 1,258,604 100.0% 35.9% Manufacturing 26.1% gas Total 77.8% restructured 682,669 loans 100.0% 19.5% FYE 2020 FYE 2020 Restructured % to USD % to % to Public % to Others 5.0% loans by US$' m N'm sector US$ Gross loans loans Oil and Loans by sector N'm Restructured Gross 18.8% loans loans Oil and Others 21.1%. 1,606 642,996 51.4% 22.0% gas 51.4% gas Oil and gas Manufctg 465,403 71.5% 15.9% Power 10,847 1.7% 0.4% 3.0% 88 Manufctg 771 308,562 24.7% 10.6% Power 35,291 2.8% 1.2% Others 659 263,963 21.1% 9.0% Total US$ loans Power 2.8% Power 19,627 3.0% 0.7% Manufac Public 122,595 18.8% 4.2% Oil and turing Others 32,746 5.0% 1.1% Manufacturing 24.7% 1.7% gas 71.5% Total restructured 651,216 100.0% 22.3% 3,124 1,250,812 100.0% 42.8% loans © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 30#31Strong Capitalisation • Solid and high-quality capital position provides room for further growth. Liquidity & Capital Adequacy 69.7% 80.9% 71.6% 66.2% 57.3% kkkkl 27.0% 2017 2018 25.0% 22.0% 23.0% 21.0% 2019 2020 2021 Capital Mix Liquidity □ Capital Adequacy 94.7% 93.8% 94.3% 96.1% 92.0% LLLLI 2017 2018 Tier I 2019 Tier II 2020 2021 3.9% Capital and liquidity ratios - well above regulatory requirements of 30% for Liquidity and 15% for Capital Adequacy Ratio. - Capital base predominantly made up of Tier 1 (core capital) which consists of share capital and reserves. © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 31#32TIMELESS ZENITH ACCOUNT for Senior Citizens *966* EazyBanking aspire SME Grow ZIVA my Biz SCAN toPAY Save 4Me Target Savings Accoun Z MONEY Business Segments Performance & Subsidiary Review The Zenith Bank Mobile App making Afe simple INTERNET TH BANKING Zweman ZECA Zenith Children's Account GlobalPay TIMELESS Pension Advance © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts#33Performance – By Business Segments • Continuous diversification and improved profitability across core business segments. FY 2021 (A'million) Gross Revenue 2021 Corporates Public Commercial/ SMES Corporates 56.7% Retail Consolidated Public 8.6% Gross revenue Total expenses Profit before tax 434,251 (290,259) 143,992 65,838 (43,424) 22,414 169,432 96,037 (108,406) (43,095) 61,026 52,941 765,558 (485,184) 280,374 Commercial/ SMEs Retail 22.1% 12.5% 2020 FY 2020 (A'million) Public Corporates 8.9% 54.6% Corporates Public Commercial/ SMES Retail Consolidated Gross revenue Total expenses Profit before tax 380,575 (255,542) 125,033 61,705 (43,839) 17,867 166,387 87,783 696,450 (100,631) (40,578) (440,589) 65,756 47,205 Commercial/ SMEs 23.9% 255,861 Retail 12.6% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 33#34Loans & Deposits - By Business Segments Gross Loans FYE 2021 Gross Loans - N3.50 Trillion Commercial & SMEs 18.7% Retail 5.7% Public 14.5% FYE 2020 Gross Loans - N2.92 Trillion Commercial & SMEs 19.3% Retail 4.2% Corporates 61.1% Corporates 61.6% Public 14.8% Total Deposit FYE 2021 Total Deposits - №6.47 Trillion Corporates 22.3% Commercial & SMES 39.1% Retail 28.8% FYE 2020 Total Deposits - N5.34 Trillion Commercial& SMES 40.5% Retail 32.2% Public 9.8% Corporates 16.6% Public 10.6% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 34#35Electronic Banking Products Performance by Channels. Value of Electronic Product Transactions Number of Electronic Product Transactions FYE 2021 FYE 2020 YOY FYE 2021 FYE 2020 YOY Total Transaction Value (N'bn) 85,008 49,175 73% Total Number of Transactions (million) 1,953 1,156 69% 5,624 3,824 1,573 2,217 1,510 1,286 1,144 1,518 37,837 34,631 21,520 21,498 124 111 576 358 233 580 377 354 181 105 64 47 ATM USSD Agency Banking POS Internet Mobile Banking Banking ATM USSD Agency Banking POS Internet Mobile Banking Banking ▪ Value of Transactions (N'bn) - 2021 Value of Transactions (N'bn) - 2020 I No. of Transactions - 2021 I No. of Transactions - 2020 The bank recorded a remarkable growth in both value and volume of electronic product transactions, resulting in a 38% (ref.: slide 19) growth in income on electronic products. © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 35#36Geographical Presence The Bank and its Subsidiaries Zenith Bank Plc. (Parent) Established: 1990 Branches: 393 2021 FYE PBT: N257.2Bn Total deposits: N5,169Bn Total assets: N7,872Bn ROE: 24% Staff strength: 6,298 Gambia Established: 2009 Zenith ownership: 99.96% Branches: 7 2021 FYE PBT: N1.3Bn Total deposits: N24Bn Total assets: N32Bn ROE: 16% Staff strength: 136 Sierra Leone Established: 2008 Zenith ownership: 99.99% Branches: 7 2021 FYE PBT: N2.6Bn Total deposits: N26Bn Total assets: N34Bn ROE: 31% Staff strength: 149 Zenith Pension Established: 2005 Branches: 2 Zenith ownership: 99% 2021 FYE PBT: N8.6Bn Custody assets: N5,568Bn Total assets: N27Bn ROE: 27% Staff strength: 107 Ghana Established: 2005 Zenith ownership: 99.42% Branches: 30 2021 FYE PBT: N23.4Bn Total deposits: N448Bn Total assets: N622Bn ROE: 15% Staff strength: 704 United Kingdom Established 2007 Zenith ownership: 100% Branches: 2 2021 FYE PBT: N4.9Bn Total deposits: N1,097Bn Total assets: N1,219Bn ROE: 4% Staff strength: 117 Zenith Nominee Established: 2018 Branches: 1 Zenith ownership: 99% 2021 FYE PBT: N176M Custody assets: N618Bn Total assets: N2.1Bn ROE: 7% Staff strength: 7 0 UAE Branch of Zenith UK Established 2016 1 branch China Representative Office Established 2011 Nigeria Gambia Ghana Sierra Leone ⚫ United Kingdom ■ Dubai China Subsidiaries Rep Offices © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 36#37Performance by Geography Foreign subsidiaries contributed 12% of total revenue. 12 Months Ended December 2021 (N'million) Nigeria Rest of Africa Europe Eliminations Consolidated Total Revenue Nigeria 2021 88.0% Total Revenue 688,162 74,697 19,315 (16,616) 765,558 Total expense (422,253) (47,451) (14,390) (1,090) (485,184) Profit before tax 265,909 27,246 4,925 (17,706) 280,374 Tax (26,033) (8,937) (846) (35,816) Europe Profit after tax 239,876 18,309 4,079 (17,706) 244,558 2.5% Rest of Africa 9.5% 12 Months Ended December 2020 (million) 2020 Nigeria Rest of Africa Europe Eliminations Consolidated Nigeria 86.1% Total Revenue 605,940 74,675 23,034 (7,199) 696,450 Total expense (387,642) (40,719) (15,427) 3,199 (440,589) Profit before tax 218,298 33,956 7,607 (4,000) 255,861 Tax (14,404) (9,379) (1,513) (25,296) Europe. 3.3% Profit after tax 203,894 24,577 6,094 (4,000) 230,565 Rest of Africa 10.6% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 37#38Strategy & Outlook © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts#39Strategies for Driving our Vision 1 Compete aggressively for market share while focusing on high quality assets and adopting cost reduction strategies Attracting cost effective deposits from the retail end of the market for deployment in the corporate segment with emphasis on emerging sectors. 2 Deliver superior service experience to all our clients and customers Adopting efficient digital channels. ■ Attracting talented people and investing in training. ■ Employing cutting edge technology. ■ Enhancing the experience customer with excellent service. 3 Effective Risk Management Entrenching robust risk management and corporate governance practices. ■ Value preservation is absolutely important. 4 Treasury Management ☐ Taking advantage of our liquidity in Naira and foreign currencies to optimize yields in the FX and money markets. 5 Develop specific solutions for each segment of our customers base Leveraging our capabilities and brand strength to consistently meet our clients' needs. ■ Developing a robust platform to serve as an integrated financial solutions provider to our diverse customers. 6 Retail and Digital Footprint ■ Official launch of the Zenith Bank Intelligent Virtual Assistant (ZIVA). ■ Deepening retail market penetration using our digital platforms. Increasing the volume of transactions processed on our digital platforms. © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 39#40Our Key Growth Target Sectors Driving Profitability with our Competitive Advantages Identified Growth Sectors ■ Retail/SMEs Agriculture ■ Healthcare/Pharmaceuticals ■ Infrastructure ■ Manufacturing ■ Petrochemicals ■ Real Estate and Construction ■Service Industry ■ Telecoms ■ Transportation and General Commerce Competitive Advantage ■ Strong capital and liquidity ■ Strong brand ■ Robust risk management framework ■ Extensive branch network ■ Robust ICT and digital channels ■ Well motivated staff force ■ Excellent customer services © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 40#41Guidance for FYE 2022 FYE 2021 Guidance FYE 2021 Achieved FYE 2022 Guidance PBT Effective Tax Rate PAT #270Bn #280Bn N294Bn 13.0% 12.7% 15% #235Bn #245Bn N250Bn ROAE 23.0% 20.4% 20% ROAA 3.2% 2.7% 2.5% NIM 8.0% 6.7% 7.2% Cost of Funds 2.0% 1.5% 2.0% Cost of Risk 2.0% 1.9% 2.0% Cost to Income 48.0% 50.8% 48.0% Deposit Growth 10.0% 21.1% 12.0% Loan Growth 10.0% 20.0% 10.0% Loan to Deposit (Group) 60.0% 54.1% 60.0% Loan to Deposit (Bank) 65.0% 62.6% 65.0% Capital Adequacy 21.0% 22.0% 20.0% Liquidity Ratio 60.0% 71.6% 60.0% NPL NPL Coverage 4.5% 4.2% 4.5% 130.0% 114.4% 120.0% © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts | Page 41#42Thank You © 2021 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts