ZENITH BANK (GHANA) LIMITED

SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

SUMMARY STATEMENT OF COMPREHENSIVE INCOME SUMMARY STATEMENT OF CHANGES IN EQUITY

2020 2019
Year ended 31 December Stated Statutory Credit Risk Retained
GH¢’000 GH¢’000 2020 Capital Reserve Reserve Earnings Total
Interest income 849,155 766,551 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Balance at 1 January 2020 400,000 305,341 25,313 388,014 1,118,668
Interest expense (271,017) (298,532)
Profit for the year - - - 338,126 338,126
Net interest income 578,138 468,019
Total comprehensive income - - - 338,126 338,126
Regulatory and other reserve
Fees and commission income 89,289 80,537 transfers

Fees and commission expense (9,455) (7,941) Transfer to credit risk reserve - - 8,071 (8,071) -

Net fees and commission income 79,834 72,596 Transfer to statutory reserve - 84,532 - (84,532) -
Net transfers to reserves and
- 84,532 8,071 (92,603) -
transactions with owners
Net trading income 53,209 91,647
Balance at 31 December 2020 400,000 389,873 33,384 633,537 1,456,794
Net income - financial instruments carried at fair value 19,414 (18,599)
Other income 1,591 7,897
Year ended 31 December
Net trading and other income 74,214 80,945 2019
Balance at 1 January 2019 400,000 243,724 22,237 206,240 872,201
Operating income 732,186 621,560
Profit for the year - - - 246,467 246,467
Impairment loss on financial assets (14,308) (10,093)
Total comprehensive income - - - 246,467 246,467
Personnel expenses (133,795) (142,732)
Regulatory and other reserve
Depreciation and amortization (21,528) (21,178) transfers

Other expenses (95,682) (94,770) Transfer to credit risk reserve - - 3,076 (3,076) -
Transfer to statutory reserve - 61,617 - (61,617) -
Profit before income tax 466,873 352,787
Net transfers to reserves and
- 61,617 3,076 (64,693) -
Income tax expense (128,747) (106,320) transactions with owners
Profit after tax attributable to equity holders of the Balance at 31 December 2019 400,000 305,341 25,313 388,014 1,118,668
338,126 246,467
Bank
Other comprehensive income (net of income tax) - -
SUMMARY STATEMENT OF CASH FLOWS
Total comprehensive income attributable to equity
338,126 246,467
holders of the Bank 2020 2019
GH¢’000 GH¢’000
Earnings per share - Basic & Diluted 0.08 0.06 Profit before tax 466,873 352,787
Adjustments for:
Depreciation and amortization 21,528 21,178
SUMMARY STATEMENT OF FINANCIAL POSITION
Net impairment loss on financial assets 14,308 10,093
2020 2019 Net interest income (578,138) (468,019)
Profit on disposal of property, plant and equipment - 96
GH¢’000 GH¢’000
Assets Unrealised exchange difference on borrowings (7,783) 13,423
Fair value changes recognised in profit or loss (19,414) 18,599
Cash and bank balances 1,489,323 1,017,077
(102,626) (51,843)
Non-pledged trading assets 98,097 312,686
Changes in:
Pledged trading assets 263,801 197,839 Investments (other than securities) 326,126 (239,627)
Investment securities 4,505,323 3,616,610 Non-pledged trading assets 214,589 (200,615)
Investments (other than securities) 176,077 538,918 Pledged trading assets (65,962) 11,270
Investment securities (1,010,857) (881,571)
Current tax receivable 3,017 25,733
Mandatory cash reserve (153,141) (104,820)
Derivative financial instruments 31,175 -
Loans and advances to customers (408,955) 84,834
Loans and advances to customers 1,057,205 648,250 Other assets (62,884) 23,087
Property, plant and equipment 162,001 162,424 Deposits from customers 1,342,210 1,049,514
Deposits from banks and non-bank financial institutions (14,888) 9,541
Intangible assets 5,928 4,422
Other liabilities 80,411 20,359
Right of use assets 91,871 88,290
246,649 (228,028)
Deferred tax assets 17,903 8,780 Interest received 849,155 766,551
Other assets 132,859 69,975 Interest paid (271,017) (298,532)
Total assets 8,034,580 6,691,004 Corporate taxes refund received 7,265 -
Corporate taxes paid (121,266) (142,436)
Net cash flow generated from operating activities 608,160 45,712
Liabilities
Deposits from banks and non-bank financial institutions 21,361 36,249 Cash flow from investing activities
Deposits from customers 5,799,266 4,457,056 Acquisition of property, plant and equipment (14,949) (12,984)
Proceeds from disposal of property, plant and equipment - 16,319
Borrowings 289,079 701,818
Acquisition of intangible assets (3,763) (4,013)
Other liabilities 365,093 284,682 Net cash flow used in investing activities (18,712) (678)
Lease liabilities 93,629 84,326
Deferred tax liabilities 9,358 8,205 Cash flow from financing activities
Finance lease payments (5,291) (1,054)
Total liabilities 6,577,786 5,572,336
Drawdown on borrowings 224,394 9,331,271
Repayment on borrowings (643,695) (9,684,936)
Equity
Net cash flow used in financing activities (424,592) (354,719)
Stated capital 400,000 400,000
Statutory reserve 389,873 305,341 Net increase / (decrease) in cash and cash equivalents 164,856 (309,685)
Credit risk reserve 33,384 25,313 Balance at beginning 936,574 1,213,467
Retained earnings 633,537 388,014 Cash and cash equivalents at 31 December 1,101,430 903,782
Effect of exchange rate fluctuations on cash and cash
Total equity 1,456,794 1,118,668 (4,610) 32,792
equivalents held
Total equity and liabilities 8,034,580 6,691,004 Cash and cash equivalents at 31 December 1,096,820 936,574
 ZENITH BANK (GHANA) LIMITED
FINANCIAL
SUMMARY STATEMENTS
FINANCIAL FOR THE FOR
STATEMENTS YEARTHE
ENDED
YEARDECEMBER 31, 2018 2020
ENDED 31 DECEMBER
NOTES TO THE SUMMARY FINANCIAL STATEMENTS REPORT OF THE DIRECTORS
1. Reporting entity
The Directors in submitting to the shareholders the summary financial statements of the Bank for the year ended 31 December 2020 report as follows:
Zenith Bank (Ghana) Limited (the Bank) is a limited liability company incorpo-
Directors' Responsibility Statement
rated and domiciled in Ghana. The registered office is Zenith Heights, No 31
Independence Avenue, PMB CT 393, Accra. The Bank commenced universal The Bank’s directors are responsible for the preparation of the financial statements that give a true and fair view of Zenith Bank (Gh ana) Limited’s
banking operations in September 2005 and operates under the Banks and financial position at 31 December 2020, and of the profit or loss and cash flows for the year then ended, and the notes to the financial statements
Specialised Deposit-Taking Institutions Act, 2016 (Act 930). The Bank is a which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Stand-
subsidiary of Zenith Bank Plc, a bank incorporated in the Federal republic of ards, and in the manner required by the Companies Act, 2019 (Act 992), and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act
Nigeria. 930). In addition, the directors are responsible for the preparation of this directors' report. The directors are also responsible for such internal control as
the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
2. Basis of accounting
error, and for maintaining adequate accounting records and an effective system of risk management.
The Bank’s financial statements have been prepared in accordance with
The directors have made an assessment of the Bank’s ability to continue as a going concern and have no reason to believe the business will not be a
International Financial Reporting Standards (IFRS) and in the manner required
going concern.
by the Companies Act, 2019 (Act 992) and the Banks and Specialised Deposit-
Taking institutions Act, 2016 (Act 930). Financial results and dividend

3. Functional and presentation currency Highlights of the financial results of the Bank for the year ended 31 December 2020 are set out below:

These summary financial statements are presented in Ghana Cedi, which is the 2020 2019
31 December
Bank's functional currency. GH¢’000 GH¢’000
Profit before taxation is 466,873 352,787
4. Use of judgements and estimates
from which is deducted taxation of (128,747) (106,320)
In preparing these summary financial statements, management has made giving a profit after taxation for the year of 338,126 246,467
judgements, estimates and assumptions that affect the application of the Bank's (92,603)
less net transfer to statutory reserve fund and other reserves of (64,693)
accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and leaving a balance of 245,523 181,774
underlying assumptions are reviewed on an ongoing basis. Revisions to to which is added a balance brought forward on retained earnings of 388,014 206,240
estimates are recognised prospectively. leaving a balance of 633,537 388,014
5. Basis of measurement
In accordance with Section 34(1)(b) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), an amount of GH¢84,531,709
These summary financial statements have been prepared on a historical cost (2019: GH¢61,616,817) was transferred to the statutory reserve fund from profit for the year, bringing the cumulative balance on the statutory reserve
basis except for the following item: fund to GH¢389,872,709 (2019: 305,340,523) at the year end.

Items Measurement Basis

Dividends
Non-derivative financial instruments at fair
value through profit or loss. The directors do not recommend the payment of a dividend (2019: Nil).
Fair value
Pledged trading assets Directors’ Interest

Non-pledged trading assets No director had a material interest at any time during the year, in any contract of significance, other than a service contract with the Bank.

Auditor

6. Significant accounting policies The auditor, PricewaterhouseCoopers, will continue in office in accordance with Section 139 (5) of the Companies Act, 2019 (Act 992) and Section 81
of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
The principal accounting policies applied in the preparation of these summary
financial statements are consistent with the accounting policies applied in the Approval of the Financial Statements
audited financial statements of the Bank for the year ended 31 December,
The financial statements of the Bank were approved by the Board of Directors on 12 February 2021 and were signed on their behalf by:
2020. These policies have been consistently applied to all the years presented,
unless otherwise stated.

7. Risk Management

Freda Duplan Anthony Akindele Ogunranti

The Bank’s activities expose the business to certain risks. The Bank has
exposure to the following types of risks:
(Chairman) (Managing Director/CEO)
• Credit risk
INDEPENDENT AUDITOR’S REPORT ON THE SUMMARY FINANCIAL STATEMENTS TO THE MEMBERS OF
• Liquidity risk
ZENITH BANK (GHANA) LIMITED
• Market risk Our opinion

• Operational risk In our opinion, the accompanying summary financial statements of Zenith Bank (Ghana) Limited (the “Bank”), are consistent, in all material respects,
with the audited financial statements of the Bank for the year ended 31 December 2020, on the basis described in the notes.
These risks are managed professionally and in a targeted manner. The Bank’s
risk management policies are established to identify and analyse risks faced by The summary financial statements
the Bank, set appropriate risks limits and controls as well as monitor these risks
The Bank’s summary financial statements derived from the audited financial statements for the year ended 31 December 2020 comprise:
and adherence to established policies. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions, products and  the summary statement of financial position as at 31 December 2020;
services offered by the Bank.  the summary statement of comprehensive income for the year then ended;
 the summary statement of changes in equity for the year then ended;
8. Quantitative Disclosures
 the summary statement of cash flows for the year then ended; and
2020 2019  The related notes to the summary financial statements.

Capital adequacy ratio (%) 43.17 31.36

The summary financial statements do not contain all the disclosures required by International Financial Reporting Standards and the Companies Act,
Common Equity Tier 1 Ratio (%) 43.17 31.36 2019 (Act 992) and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). Reading the summary financial statements and the
auditor’s report thereon, therefore, is not a substitute for reading the audited financial statements and the auditor’s report thereon. The audited
Leverage Ratio (%) 15.19 13.81 financial statements, and the summary financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on
the audited financial statements.
Non-performing loans to gross loans (%) 6.15 16.49
The audited financial statements and our report thereon
Loan loss provision (%) 3.27 4.81
We expressed an unmodified audit opinion on the audited financial statements in our report dated 12 February 2021. That report also includes the
communication of key audit matters. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
Liquid Ratio (%) 136 172
the audited financial statements of the current period.

Off-balance sheet exposures (GH¢’ mil- 1,195 1,153 Directors’ responsibility for the summary financial statements
lion)
The directors are responsible for the preparation of the summary financial statements on the basis described in the notes.

Auditor’s responsibility
9. Defaults in statutory liquidity and accompanying sanctions Our responsibility is to express an opinion on whether the summary financial statements are consistent, in all material respects, with the audited
financial statements based on our procedures, which were conducted in accordance with the International Standard on Auditing 810 (Revised),
2020 2019 ‘Engagements to Report on Summary Financial Statements’.

a) Default in statutory liquidity Nil Nil The engagement partner on the audit resulting in this independent auditor’s report is Michael Asiedu-Antwi (ICAG/P/1138).

b) Sanctions Nil Nil

10. Corporate social responsibilities PricewaterhouseCoopers (ICAG/F/2021/028)

Chartered Accountants
The Bank spent a total of GH¢1,572,000 on corporate social responsibilities
Accra, Ghana
during the year. These are mainly in the form of educational scholarship for
26 February 2021
needy children and sponsorships of major social events and donations to
support the fight against Covid-19.