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Investor Presentaiton

Consolidating 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
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