Nigeria’s largest financial institution by belongings, Zenith Bank Plc, spent a whopping N20 billion on Information Technology in 2020, greater than double its 2019 spend of N9 billion.
A cursory view of the financial institution’s expense line for 2020 reveals that it spent N148.1 billion on different bills in contrast with N129. 4 billion in the identical interval of the earlier 12 months. Information know-how was the foremost driver of the financial institution’s expense line, making up about 15.5% of whole working expenses.
Why this issues: Most banks are anticipated to file larger spend on info know-how in 2020 as a consequence of pressured work-from-home insurance policies triggered by Covid-19. Apps equivalent to Zoom, and Microsoft Teams went mainstream throughout the pandemic as most companies more and more trusted them to operate.
- While distant working might have been a significant contributor, the financial institution seemingly splurged closely on software program functions, cloud computing, SaaS, and investing in know-how to drive its FinTech objectives.
- Apart from Information Technology, the financial institution additionally spent extra on AMCON levy throughout the 12 months, incurring a price of N30.9 billion.
- A notable discount in year-on-year expenditure was its spending on Hotels and Travels. The financial institution spent N1.8 billion in Travel and Hotels.
- Zenith Bank reported a file N230 billion in revenue after tax for the 12 months ended December 2020. The financial institution is now the biggest financial institution by Total Assets, with over N8.4 trillion.