Zenith Bank Plc (ZENITHBANK) Earnings Call Transcript & Summary

Good day, ladies and gentlemen, and welcome to the Zenith Bank Plc FY 2020 Investor Annual Conference. [Operator Instructions] Please note that this call is being recorded. I would now like to turn the conference over to Ebenezer Onyeagwu. Please go ahead, sir.

Good afternoon, ladies and gentlemen. It is my pleasure to welcome you to our conference call, where we throw more light and answer questions and take your comments regarding our full year 2020 audited financial statements. On this [indiscernible] colleagues, we have Temitope Fasoranti, Executive Director; Denison Olisa, Executive Director; Henry Oroh, Executive Director; Felix Egbon, our Chief Risk Officer; and Mukhtar Adam, our CFO. Gentlemen, 2020 was an extraordinary year and radically so. 2020, we saw the COVID that hits the global economy with monumental disruption on public health as well as economic -- global economic activities. Nigeria wasn't an exception. And in Nigeria, we saw [indiscernible] government commenced the lockdown on 30th of April and the [indiscernible] of lockdown from 4th of May 2020. And that led to us as an institution have been [indiscernible] of our business continuity plan, which necessitated a good number of our team having to work remotely from home, and this was effectively and diligently carried out without any disruption on the flow of our activities. However, it's also important to say that as a result of the pandemic, the global economy witness -- shows contraction. Nigeria, we saw the economy contract by 6.1% in Q2; and in Q3, 3.62%. And fortunately, for us, we've seen an exit of the contract from recession in Q4, with GDP Q4 figure [indiscernible] at 0.11%. However, the pandemic also led to a drop in commodity prices. In Nigeria, with saw food prices plummet, which considered a threat to [indiscernible] and also a threat to the accretion to our results. So indeed, we opened the year 2020 with a result of $13.5 billion, and we closed the year with $35.4 billion [Audio Gap] 2020, translating to a decline of 8%. We also witnessed in the cost of the year [indiscernible] purchase in October, which also, to some extent, cripple economic activities in several parts of the country. As a result of the pandemic, we saw an immediate and proactive response from the Central Bank that led to a lot of initiatives that included some substantial stimulus packages to ensure that funding was made available to the health sector. There was 100 billion credit support for the health sector, 50 billion credit supports micro lending incentive, there was also the creation of NGN 1 trillion manufacturing and agri support for the African manufacturing sector. Also, in the course of the year, the Central Bank of Nigeria in conjunction with African Finance Corporation and the Nigerian Sovereign Investment Authority established $39.4 billion infrastructure development company. This is intended to provide a support and the platform to address infrastructural support and funding and deal with the issue of infrastructure deficits in the country. In the course of the year, too, we've seen monetary policy of the CBN take decision that saw a reduction in monetary policy rates. In the MPC meeting of May 2020, it was reduced from 13.5% to 12.5% and subsequently reduced in the MPC meeting of September to 11.5%. Cash reserve ratio was increased from 22.5% to 27.5% would defer from January 2020, while liquidity ratio remains unchanged. Under this very challenging situation and a serious impact on macro economy, I'm happy to announce to you that Zenith Bank Group recorded top line growth of 9%, earnings moving from NGN 662 billion to NGN 696 billion. Fee before tax also grew by 5% from NGN 243 billion to NGN 255 billion. Profit after tax also increased by 10% from NGN 208.8 billion to NGN 230 billion. We recorded a loan growth of 90% with our loan figures moving from NGN 4 trillion to NGN 2.9 trillion. And the part of this was also a substantial growth in our deposits from NGN 4.23 trillion to NGN 5.3 trillion. I'm also happy to announce to you that our core business segments of corporates, commercial, SME and retail, all recorded impressive growth. That's why the pandemic why our key ratios remain very, very strong. Our expansion in the retail space and the massive deployment of our digital banking technology has also brought about [Audio Gap] substantially so in our retail deposits that grew by 55% from NGN 1.1 trillion to NGN 1.72 trillion. It's also important to say that Zenith Bank [ remains ] a very compelling investment position. Indeed, if you invested in Zenith Bank in January 2020, when the price was up by NGN 19.25, as you speak, [ with ] current dividend payout for the full year of NGN 3 and also the capital appreciation would have end a substantial increase in [indiscernible] a substantial increase in your investment by 552.2% just 1 year. So ladies and gentlemen, we'll have the financials only [Audio Gap] create time for question-and-answer where we can throw more lights into the key numbers behind our performance. So I welcome your questions at this moment.

[Operator Instructions] The first question comes from Muyiwa Oni from SBG Securities.

Congratulations on your results. Just the first for me is on asset quality. I was just wondering how we should be looking at asset quality for Zenith Bank, particularly around 2020 and for 2021. So if you look at your NPL ratio, it was flat year-on-year. However, it's [ 300 ] higher, about 12% -- we're up about 12%. And in terms of contribution of stage 3 loans as a proportion of gross loans is around 8.7% in 2020 from 7.9% in 2019. And so when we look at the 3 loans, you see some elements of deterioration. If you look at stage 2 loans as well, it's much higher, about 26% of loans versus 8% -- almost 9% in 2019. So just wondering how one should be looking at NPL ratio relative to stage 3 loans? And then also going forward as well, how should we look at asset quality, particularly when you consider the restructured loans and how that could go going forward? And then on your e-banking revenues, just wanting to understand how to look at e-banking revenues going forward, particularly when one considers that part of the decline last year was because of the fee revision by the Central Bank? And so how should one look at e-banking revenues for 2021? And then on -- from your cost line, we saw a considerable increase in your IT expenses. Just wanted to understand what was driving that. And then also trying to understand how much of a savings you're able to derive from working from home? So remote working seems to have benefited the few institutions last year. We want to understand how Zenith Bank benefited from that. I'll pause now for your answers and also allow others to ask questions as well.

Okay. Thank you very much, Muyiwa. I think I'll take the questions regarding the asset [indiscernible]. Well, assets will remain -- will continue to remain [indiscernible]. If you look at [indiscernible]. Now with something the 19% growth in the loan book. Our NPL remains flat, thus even taking into consideration a huge impairment that we also recognize this year in order to reflect the current uncertainty and the weak macroeconomic environment that we operate in. So we will continue to choose and pick the kind of risk assets we create. That has always been our core choice, always been been last time. And we don't see us compromising that. In terms of the restructured loan, we didn't have much of the loans being restructured. The [indiscernible] part of what was done on that is CBN [indiscernible] was likely the public sector related loan, where the Central Bank of Nigeria gave an instruction of mandated advance to extend tenor and repayment and reprofile the repayment of those loans. But even at that, we've seen that the revenue [indiscernible] we're not that impacted by COVID because there was a kind of balance coming from the fact that there was [Audio Gap] that steep increase also help to sustain the pool of [indiscernible] valuable in the sector. I will leave our CFO to deal with the questions of the staging of the loans. E-business -- e-banking revenue, you talked about -- yes, you are right. At the beginning of 2020 decline, and the fees attributable to e-banking activities. [ Averagely ], it came down by about 50%. So on the back of that, if you compare it with what we have, on a consolidated basis, we had a decline of about 30%. That decline of 30% is grossly below the CPR 50%. Again, if you look at the number in terms of volume of transaction, of course, we did more volume last 2020 compared to 2019. So I would say that unless we witness another product decline in e-banking revenue, we expect that we should be able to achieve a growth on that line. IT expense. Yes, IT expense is larger than normal for the following reason. One, 90% to 95% of our IT costs are foreign currency base. So the asset rate movement meant that when you translate your -- it came to much higher than what we spent in the previous year. That's one. Two, as we activated our [ BCP ], we needed to do massive IT deployment. We needed to ensure that we enhance our cyber security. And ideally, what we do for our IT expense is to -- we'll write them off for about 3 years. But when we deal with certain core elements of IT security, we don't take that through 3 years. We take them on in the balance sheet right away. That's because of the very dynamic and steady and rapid nature of security spend that we need to [ encode ]. We have to make sure that we protect our network. We have to make sure that we control the remote access from everywhere. So online retail, we're able to monitor. And I'm happy to say that we never had any glitch which was [indiscernible]. And we never had any fraud. Firewalls, we have to renew and make sure that we got them elevated because within this time, when most institutions were working remotely, we saw a lot of threats in terms of network compromise. We saw a lot of issues regarding even internal compromises here and there. But in our [indiscernible] our records remain [indiscernible]. Then the other piece is that on the digital and the retail space, what we are doing now, what we did last year was much more than what we did the year before. And for you to do that, you needed to commit to a huge IT expenditure. Again, [indiscernible] some of since we had to acquire last year. They put in is that the lifetime is going to take us through the course of this year. We don't have to repeat that. So we are expecting moderation in terms of the IT costs. Service, we achieved. Well, the service we achieve likely, if you look at it, businesses we see going on. Service were around those 4 elements of traveling expenses, trading expenses because of the [indiscernible] doing this remotely. So those are the 3 areas. If you look at [indiscernible], because of the increase in energy costs, that's also the reason why that remote comes in. In terms of key areas where we are still saying that they are not [indiscernible] significant compared to your [indiscernible]. I leave our CFO, to deal with the questions on the changing of the roads.

Thank you very much, sir. Good afternoon, ladies and gentlemen. Muyiwa, thank you for the question on the stage 3 loans. I want for attention, to the stage 3 loans you mentioned. If you do the effective on this stage 3, it's just about 5.7%. The NPL ratio is 4.29%. So they are very close, and I have explained over time that the NPL is based on [indiscernible] which we have provided the reconciliation in the financial statement. So if you want more on our [indiscernible], you can see the financial reconciliation in the financial statements. But no, if you look at the details on Page 81, part of [ note 3 ], you will see that our effective provisioning on stage 3 loans is about 65%, which is significant enough, considering the high within the year we're operating. You mentioned stage 2 loans have grown. Yes, it has because the risk environment has elevated. So certain loan, the nature of the industry default in June would naturally looking at [indiscernible]. But the good thing is that those loans have very, very good collateral. And if you do the effective provisioning on the stage 2 loans, you get something around 8% which means the collateral for those loans are very, very good. That is also on Page 81. Then stage 1 loan, the effective impairment on is about 1.5. So how do you have to look at our NPL? As [indiscernible] said, the NPL ratios, we are coming from a very high-risk environment, and we're able to close with NPL [ 2.25% ]. Even if you take the worst-case scenario and say you are using stage 3 loans, that's about 5.7%, it's still very, very, very decent compared to most parts even globally. And so that is what I have here. If you want to see more on financial reconciliations, you can check to see that it's also in our financial guidelines and NPL. Thank you.

The next question comes from Adesoji Solanke from Renaissance Capital.

I have a couple of [indiscernible]. The first one is, [indiscernible] give some update on the Central Bank's plans to convert loans the federal government to bonds and the expectation that this could be passed on to the banks, perhaps by swapping some of your cash reserves [ for one ]. I'm just trying to understand where things are in terms of this conversation, what sort of yield do you think banks could receive if this does happen? And what sort of time lines to do work with? My second question is around credit growth for last year. Can you please clarify what drove the strong credit growth in 2020? And your expectations for credit growth in 2021? Then my third question is if you look at Page 107 in the PDF of your financials, in terms of how you reported your swap contracts of NGN 440 billion, this is my understanding. So you borrow dollars, which is swapped for naira, which means you should be short dollars on the asset side, not long. And if I correct this by deducting the NGN 4.3 billion twice to get this [indiscernible] dollar, the dollar asset should actually be 1.97 trillion, with a net swaps dollar position of 147 billion. And correct me if I'm wrong. And if your balance sheet is actually short dollars, then shouldn't you not -- you shouldn't have an FX revaluation gain on your balance sheet position. So this is my fourth question. And my final question is just around borrowings. So on Page 171 of your financials, you have something called due to banks for clean letters of credit of NGN 579 billion. Can you give any sort of clarity as to what you actually borrowed from here? And is this the fund you've used for the swaps? And if not, what's the breakdown of how you actually fund your swaps?

Thank you very much, Soji. I'm going to deal with the first one you mentioned. I'm not aware of a conversation from CBM to convert government loans to bond. That and I'm just hearing about it on cost line. We have not had such conversation at all. And until we had, I'll see what CBN has in place. It's difficult for us to comment but so far it has never come up in any of the conversations that we have with Central Bank. In terms of credit growth, of course, we recorded [indiscernible], even though we had some foremost lockdown economic activities, it was actually between the months of April to -- that's the month of March to May. And so that we cannot -- eventhough on a [ muted level ]. So we've seen across different segments or however, the key reasons as follows: One, the dollar loans have to translate us, whereas with current [indiscernible] loan at the rate 360 at the beginning of the year. At the close of the year, the [indiscernible] rate was -- the balance sheet was translated at 400. So the movement that different between 360 and 400. When you translate it to the dollar loan, that meant that the dollar portion of the loan book [ have to go on ]. Then we've also improved in terms of retail loan in retail loan, SME loans. So across the different segments of our market. We see some modest growth in terms of the loan book. I'll leave the CFO to correct the impression you have about our swap book and [Audio Gap] to our trade transactions.

Thank you. Thank you very much, Soji, for the questions. If you turn on Page 108, as you mentioned, you have the swap contracts, right? Now when we do swap, we give counterparties dollars and get treasury bills, which is naira based as a swap. So the treasury bills is sitting in naira. The liability that you used to get the dollars is sitting in dollar. So there is a currency mismatch. So for you to get the actual assets that you have, your total asset in both currencies correctly, you need to account for this. And that is the 440 that you see on the group. If you do that, you account for it properly, you are going to have a long dollar position of 1.2 billion on the bank and about 1.7 billion on the group. That is what is [indiscernible]. If you use our 0.2 billion, you [ charge ] with the exchange rate movement within the year of [Audio Gap] you will get very close to what you have as revaluation gearing [indiscernible]. What we have on Page 170 as due to pounds are LC lines. That LC line has a corresponding form that we have hold. So we use lines with several banks that our customers have tap in their lines and have used. So it's like against us, but we have that corresponding funds also sitting with us. So we are accounting for the 2, you're seeing it here like something new. It's used to report in other liability, okay? But now we are putting it as part of our borrowing, a very short-term borrowing or a trading line. So that's what is happening there. I hope it's clear. Thanks.

Just two things. Based on your immediate past comment. So can you clarify for the swaps, how do you fund them? Are they funded from with [indiscernible] deposits? Do you fund the borrowings, how do you fund them in terms of the source of the dollars? So that's one question. Then the second, just a follow-up on your explanation of the swap reposting. So technically, you are short dollars in terms of this transaction because in the [ pro rata ] dollars to naira, you've got naira instruments on the asset side. So in actuality, you are short not long as the numbers are reported in the FX breakdown on the balance sheet. Is that correct?

It's not. We are long. I don't know how -- what you are trying to put together to say [Audio Gap] position. You know, you and I know if it is short position and if the exchange rate moves, we are going to have a financial loss. And I'm sure from the time staff monitoring our financial [indiscernible], you have never seen a financial loss with access rate costs. So we have 1.2 on the bank, as I said, and 1.7 on the group. And I can provide further details as a follow-up question if you want. But what I've explained, it's how we have the prepared for the swaps, the naira and the dollar. You need to appreciate [indiscernible] sitting on the balance sheet and then you can understand why it's a long position, okay? Then -- that's number one. What fund? What source of funds do we use for the swap? I mean we have different source of funding. We used to have some euro bonds that we have paid back on the remaining. And then funds are fungible in treasury management. So we have different sources of funding that we use to fund our dollars. And we keep expanding the funding base.

And let me say that Soji, for that, if you look at our dollar position, it's [indiscernible] and decide to do the simple arithmetic of [ netting of ], that's when you look at the total dollar liabilities, net of the total dollar obligations. That's the quickest [Audio Gap] about the long dollar position.

The next question comes from Ronak Gadhia from EFG Hermes.

Three or four questions from my side as well. Firstly, maybe just as a follow-up of maybe what Soji is asking. On your trading income, could you just give a bit of granularity on the key drivers of the same? How much of it was coming from FX swaps? How much of it maybe mark-to-market gains? And how much of it could be just conventional interest income from your investment securities held at fair value through the P&L? That's the first one. And then sort of as a follow-up to that asset yield environment, what should we expect in terms of your NIMs and your trading income for this year? That's the second question. And then the third one is on your U.K. subsidiary, given the sudden turnaround in yields we're seeing globally, especially in the U.S. What impact does that have on the funding profile for the U.K. subsidiary and generally, the profitability? Because my understanding of the business model of that is it sources cheap liquidity from various sources and then invest in various instruments. So is that business model still sustainable given the increase in yields?

Yes. Thank you very much, Ronak. With respect to the trading income, it came from combination of sources like we just mentioned. We are quite active. We have a very robust profound talented treasury team who can read the market and trade on the volatility. Bear in mind that Zenith has always been -- we'll be very strong at [ heavy money ] concentration. The challenges we see in the market -- the changes in the market is not [indiscernible] lose our profile. It's not [indiscernible] lose our skill instead we're having some refinements, if you like, some sophistication being introduced into the trading. So we have gaining a lot in terms of both trading and bond and active yield as well as also a combination of the earnings we get from the swap. That's it. Asset yield. Yes, that 8%, I think we closed with about 7.8%. Now with sudden drop in the yield. See, this can come from [indiscernible] is at the back of the ingenuity, the creativity of the team. I tell people that if you have the kind of team we have here, is -- failure is not an option for us. It's certainly not an option. We see our team doubled down in terms of negotiation, making sure that we have right and appropriate price and [indiscernible]. For me, as a CEO and for my [ escrow ] team, in a way of [indiscernible] and the passion of the team is an inspiration for us to continue to provide [indiscernible]. So that's why if you compare to -- if you compare the drop in yield [indiscernible], you see that we've done very, very well. So what do we see as asset yields are picking up. We think we should be able to meet the 8% NIM margin we guided last year. And we are going to repeat that guidance. We'll continue to keep our eyes on the ball and make sure that, yes, we continue to negotiate with price increase. Those are -- the deposit rates are going out is a challenge for us to make sure that correspondently too we reprice our loan. For as long as you can do it and do it in a most proactive manner, it's not for me to tell the market how people we will do it intelligently. We will do it to deliver value to the bank. U.K. subsidiaries, yes. At the onset of the COVID, especially they suffer some mark-to-market losses in the trading books. But when the markets rebound, that's got back immediately. The one other area where U.K. subsidiary was impacted was that we are equally happy in terms of shares treasury. [indiscernible], we couldn't get outlet for that. But as yields are going up globally, we think there's an opportunity also for us to now go back into the treasury market and able to invest in HQLA to improve the yield. But not to withstand it, the U.K. subsidiary speak credit profit for the year. Albeit, not as much as it was active in the previous year. But it contributed to profit. And let me say here that all the subsidiaries of the bank have contributed to the pool in terms of profitability and [indiscernible].

A just a follow-up or just maybe a final question. Your presentation gives very detailed guidance on various line items. Could you just give some guidance on what your expectations are for noninterest revenue this year?

I didn't get it. What are you asking about our guidance on revenue?

Guidance on noninterest revenue because we can see the guidance for NIMs, asset growth, that kind of stuff, but what's the guidance for NIR?

Let me get the CFO with that. Mukhtar?

Okay. Thank you, Ronak. Noninterest revenue although we have not provided guidance, but I can share some thought [indiscernible] happening. You will see that the net interest revenue is growing as a proportion to our overall revenue base. And then what I can assure you is that it is going to take -- continue to take more significant portion. In the investor presentation, we [Audio Gap] that shows the contribution of noninterest revenue to [indiscernible] revenue. And you can see that it has improved year-on-year. So the guide is that you are going to see noninterest revenue contributing more to the [indiscernible] revenue both at [Audio Gap] it mean our retail banking, [indiscernible] a lot of fees and the noninterest businesses. So that is our guidance. It is going to be more. It is going to contribute more than it is contributing. And that has happened continuously for the last 3 years. It has grown consistently. Thank you.

The next question comes from Randolph Oosthuizen from Old Mutual.

Congratulations on an excellent result. Certainly, this time last year or the onset of COVID, we -- we've been very pleased with this result. If we were told that, that was going to happen. So well done. Just one quick question. Other comprehensive income. The fair value movements on the equity instruments of NGN 16 billion. Can you just explain -- tell me where that's from?

Thank you very much for your question. OCI is just the translation effect or the transition [ fee ] are rising from the compassion of investments in -- our investments in foreign currency. So the translation effect is that I think the CFO can throw more light on this.

Okay. Thank you. You're right. The OCI has NGN 16 billion year-on-year. Two things are contributing to that. One, the investment we have. The investment itself, the fair value of the asset, appreciated. Number two, the investment is dollar denominated so the translation effect of the dollar contributed to the gain in the OCI. Thank you.

No, I just want to know what is the investment.

Oh, you want to know what is the investment. I think if you got to note 10, you will see that we have a breakdown of those investments on income. The note on other [indiscernible]. Note 10. We have made detail disclosures of that. If you have the financial statements.

Yes. No, I have it. I just -- I mean just -- I'm just trying to understand what is the investment? Is that a -- is it a shares in a company? Or is it -- what is it?

Yes. It is an equity investment. We actually say they're not there, it's -- we say that evaluation... [Audio Gap]

One of such investments is our investment in other African Finance Corporation. African Finance Corporation is a dollar [indiscernible].

Oh, I see. Okay. All right.

Yes. Yes.

[Operator Instructions] The next question comes from Lanre Buluro from CHD.

Good performance. I missed all the chaos that we all went through last year. The fee income, can you just help us provide some more clarity around that drop. I mean it's quite -- I know you mentioned your volumes were up, but [indiscernible] drop was quite huge. Also, I saw on the deposit side your CASA crossed over 70%. I think it's the first time in almost 8 years we had such a very strong performance. And how sustainable is that? Should we expect this to be the trend going forward? Then an update on your retail strategy. How has it been? And also outlook for 2021. And finally, your world capital -- I mean, obviously, you're super capitalized. I mean don't you think maybe it's time to maybe have that really good dividend payouts over 60%, 70% dividend payout and reward your shareholders because I think -- and then also with [ AGO ] ROE so it's something that -- what's the view internally around that? Because your balance sheet is very strong. And I think it would be nice to have that big payout or maybe a special dividend for investors?

Okay. Thank you very much, Lanre. Let me begin with the last question. Not just a dividend payout this year would improve -- will move from NGN 2 [indiscernible] to NGN 3. Yes, we are super capitalized. But however, we live in very uncertain times where you have radical exponential disruption. We can't tell what will happen tomorrow. So we still think it's important for us to keep this offer. We don't have to deal with [ early stretch ] will come up. So of course, we'll continue to reward our shareholders, but let's make sure that we did this [ spin on ] let's see how we transition completely out of COVID. And getting back to life as usual or normal, then we'll be able to make certain costs regarding were not to increase the dividend payout. But now, we need to strengthen our institution. This is the time for also growth stronger muscles to be able to withstand whatever strain or stress that could come up in the market. Retail strategy. What do you want to hear from us in retail strategy? I can't begin to announce a reward what I'm doing. I'm sure, a lot want [indiscernible] number thinking that we are massively increasing our footprint in retail space. We've announced our presence. We are making the right call. We are making the right investments. We are very impressed with the feedback we're getting. Again, bear in mind that Zenith is an aspirational brand. Before we were not in retail, but now that we've announced the appreciation, the reception from the market is of overwhelming. It is just overwhelming. It is just left for us to accelerate that deployment. [indiscernible] who've taken us this, and we want to run it, we want to lead it in the same way we've led our institutional and corporate banking business. Fee income we talked about since earlier. Fee have reduced -- the income fees or income on electronic banking by average of 50%. So if you compare now with India, the 30% growth that we explained to you that, yes, indeed, we were able to carve out 20% from the improved earnings. Otherwise, on a straight-line basis, one would [indiscernible] grow by about 50%. So I take on the CASA, let me leave the CFO to speak on that.

Okay. Thank you, Larry, for the question. The CASA, I think you should be applauding us in the CASA because if you look at our savings, the savings account has grown significantly year-on-year, and it will continue to grow. When we start the CEO's opening remarks, he mentioned the extent of investments we have made in IT and various digital channels. Those are the things that have resulted in savings accounts and retail accounts growing significantly because people are able to do banking results from -- without having to come to the bank or it's easy, similar [indiscernible] of savings account significantly. You also know that because of our strength on the corporate side, the current accounts of the corporate will just continue to grow. That means that we are able to reduce our cost of funds, which you can see in the reduction in cost of funds and reduction in interest expense. So it's working for us to continue restrategize and invest more in those platforms that to overall reduce our cost of funds and improve our profitability. Thank you.

The next question comes from Gloria Fadipe from CSL Stockbrokers.

Congratulations in your numbers. Joined pretty late. So I may be asking you some questions have already been answered, but just a bit of clarity, one, on the CASA increase you just mentioned. I want to assume that this must have come from the huge OMO maturities we saw last year, just in many of the banks current and savings accounts. And since yes, we don't expect those maturities this year, I will expect that we should see all of that taper down in this. And then two, on asset yield, I know the [ MD ] has said [indiscernible] which I congratulate you on both, I just want to wrap my head around how banks as a [indiscernible] amidst the very low yield environment. So if I look at your books, almost half of your earning assets shouldn't be using more from what I see because I see a lot of huge balances in treasury bills and the CBN is keeping so much in CRR and so I just need to -- I mean just a bit of clarity on how those yields have been sustained at levels they have been sustained at? And how to look at it this year? Do we -- over the top of my head, I think that things should improve this year, but just a bit of clarity on what -- and then the T-bills, are those -- the increase we saw is it from the swap position you just spoke about earlier. And then finally, on impairments, I know loans were structured last year. And I know you said that public sector loans were the major ones that were structured. For the loan restructured, are you seeing an improvement in books? And should we be expecting some [indiscernible] this year because what I ordinarily would factor into my estimates is that we should expect more deteroriation, the macro condition has been down for a while. So we should expect some form of deterioration this year. Am I in the right direction? Or what are your thoughts around that? And then finally, a few of your peers have been looking at the holdco license, is there a chance at Zenith at some point will start thinking of that.

Okay. Thank you very much, Gloria. First is that OMO majority has no impact on CASA. OMO majority only impacts your liquidity because the deposit is already the -- anyway before you go on, if I get the deposit from the customer today, it just in my book as the deposit. It did [indiscernible] the liquidity. It's just ordinarily as cash, apply the liquidity or not to create a loan or I can invest it in OMO. So OMO majority has no impact on your CASA as it were. It just impacts your liquidity. And in the current dispensation, we think, yes, maybe what you do want to say is when the majority [indiscernible] the CR. But that's something the [indiscernible]. The corporate yield -- see, this is how I work. I can't look of today, I would tell you, I'm a surgeon, I'm not a surgeon, I'm a banker, who've done this over the years. Zenith is [indiscernible] to continue to lead in this market. We are not just the [ 3 nicest ] bank in the globe just for nothing. And the nights in Africa, we did impact in Nigeria. It comes with some ingenuity. It comes with some [indiscernible] talent. See these are things that I encourage in the ecosystem. The value is already inhibited in the system, the values created. We saw that, you see, in some ways, I say, it's like it a set menu. There are certainties you can think, certain decision, [indiscernible] we will object it. So how we do that, how we create it is our -- to do it . Trust us to do it, just keep investing, but just be rest assured that in terms of returns, we would deliver. Holdco, we are considering our options. The most important thing is that we need to grow our business. We must grow our business. How we grow it, it is organic, it is going to be holdco. We'll kept on seeing the [indiscernible]. We will not do a deal for the cosmetic of announcing a deal. We will do a deal because there is value to be created. There is synergy. There is alignment in terms of our structure, we will be on [indiscernible] therefore, we keep our options open, and our sources said to analyst like you, if you find a deal, you can let us now. We'll see when it says or not, we are quite [indiscernible] our options are very much open. But in fact, I'll leave Dennis Olisa to take you to answer the question on impairments.

On the issue of impairments, please be rest assured that as a bank, our eyes is on the ball 24/7. Our loans are very, very good. Security is not in doubt. And here [indiscernible]. You and I know that with Zenith bank we'd like to play amongst the best. So a complete [indiscernible] we still have look India, and those lots are very, very secure and they are doing well. We will not just for the sake of going in balance sheet do launch [indiscernible] please rest assured that the [indiscernible]. We will do our best to [indiscernible]. A good record is [indiscernible] everybody gets. Thank you.

The next question comes from Timothy Wambu from Absa.

My first question is regards to improvement we saw in your NPL and cost of risk. So you've given us much higher guidance on your NPL ratio and the cost of risk. What observations did you make to inform the reduction that you've reported at full year that's the first question. The second question, you say that you don't want to divulge much on your retail strategy, which I totally understand. But if you could just help me understand. I saw you grow your customer numbers by 4 million, roughly about 4 million. I would maybe give me sense of which geography is this. Is it within Nigeria only? And also we need the demographic that we managed to react fast? Third question, we've seen a move of prices. And when I look at your OpEx, I can see that [indiscernible] and maintenance, it's stabilizes cost item. What -- how do you see this plays out? Are you looking to manage that going forward? Just to get a sense on that. And then just lastly, please explain the drop in your credit fees, which has saw decline as well.

Thank you for those questions. I'll get Chief Risk Officer Felix Egbon to take that. But let me say that some of those questions were not really on the book, but I hope that is -- we've got every part of them. Go ahead.

Thank you very much. Your question on the NPL and cost of risk is well uptick. Clearly, it sounds we advise a guidance mid-year last year. The uncertainty in the environment will see very high. So expectedly, it will see consent about how the NPLs we [indiscernible] and how the cost of risk will look like at the end of the year. But thankfully, I think by the fourth quarter, it was higher certain actions were taken beginning to get a better position and clarity on how we will end at the end of the year. And the actual upticking for managers accounts on [indiscernible]. So expectedly, at the end of the year, we should have the change to come to about 2.0%. We were able to push it down about [ 1.9% ]. Of course, as you will know quite a lot of options and went into dealing with that. Mukhtar has talked about some of the actions has also been given with NPLs. I think the issues for around the NPLs, that the quality of [indiscernible] and had updates last seen in [indiscernible] NPL. So that's an essential that will guide you on what was our guidance was midyear -- our final figures were at the end of the year.

There's a question on the geography and the sources of income. Well, let me say that primarily, Nigeria remains the hub. And we've seen about 82% of the income coming from Nigeria. And actually, we are 4% if we use the PAT with 4% from Nigeria. And we are seeing from the subsidiaries, I think we [indiscernible] from the subsidiary level [indiscernible]. Like I said earlier, all the geographies deliver something to the cost which is most important. So they are all good. They don't need any subsidy from the center to operate. So what we have is to keep driving all the number. In Ghana, we are one of the [indiscernible] banks in the country. And if you look at the performance, I get to see that we are hitting in terms of rating. Gambia, it's the same. Sierra Leone, in all of them, they recorded year-on-year growth. They recorded year-on-year growth. Of course, I talked about U.K. contributing in spite of the very harsh impact of the COVID in that geography. So we are happy to say that the subsidiaries are doing well. If you look at the non-bank subsidiary, [indiscernible] medium pension cost [indiscernible] in the markets. They are contributing our [indiscernible] what will set up the [indiscernible] of the group. In their own way too, we are not getting subsidy from most [indiscernible]. We think there are things that put in something in the part of the center.

Just to help you, if you go to Page 161, you will see the condensed results that [indiscernible] summary of the performance is presented. You'll clearly see that all of them are making profits as the CEO have said, and he will also have an idea of their balance sheets. Thank you.

I just wanted to clarify my question. I was asking about the growth in your retail customers. The growth in your customers. I saw your customers grew by about 4 million. So I was asking in what geography has improved come from. Is it only Nigeria? And also can you continue to shed some light on the demography in terms of [indiscernible], so see if the H2 have joined as customers. [indiscernible] asking. Sorry for the breakup in communication.

Okay. Thank you very much. I'll leave a Temitope to answer the question.

We've spoken a lot about our retail strategy. And then one of our strong focus on that strategy is to onboard customers. We have done a lot in that regard. We have 8 channels of the customers onboarding that have led to a very significant growth in our customer base. It's all part of our retail drive, and our focus will continue to be on this. So you will see more in this regard. Thank you.

Okay. Let me [indiscernible]. In terms of geography, it covers every segment. If you look at the entire [indiscernible], the retail marketing segment, we cover all of them. And we are launching our [ open ] banking. We love the open banking, which [indiscernible] all our digital products and services to the market, especially with the fit that we can do faster integration in a very agile manner. We are one of the [ early one ] to launch the quick response book, which is also an improvement in terms of equipment is that we never [indiscernible] customers. Be able to implement effortlessly. So like Tope mentioned, the channels are there no matter who you are in the society, there is that digital thought and for you to do business with Zenith. Even if you are in the remotest location, for as long as there's telephone connectivity, you can do the onshore/offshore universal service data account booking, which you do with [indiscernible]. Then even if it's not there, there's -- we will have agency banking. So we have the talk point to provide for the different segments of the retail market. So our coverage is total. There's no exclusion. No one will be left behind in terms of our retail focus.

We have a follow-up question from Adesoji Solanke from Renaissance Capital.

Just a few follow-up questions. The first one is on Page 17 of your slides, you have something called agency and collection services. Can you talk more about what you've been doing here? I mean how many agents do you have now? How do you roll them out? Are you deploying your own PS machines? I really [indiscernible] your own branding. What exactly are you doing that? My second question is just to understand what's your -- how's view around the outlook for interest rates and the exchange rates and the drivers of your outlook? And thirdly, on asset quality, can you speak about areas where you are seeing some stress? And for your old book, considering, if I recall correctly, a number of your hedges should have matured last year, are you now buying or asking the clients to buy new ones? Or what conversations are you having around hedges nowadays?

Okay. Thank you very much, Soji. I will leave Henry to deal with the question on the oil hedges. Actually, the [indiscernible] you asked, is it the outlook on the foreign estate?

Yes.

Yes, the outlook in terms of foreign estate is of course to look at certain key [indiscernible] as they are beginning to unfold. Yes, [indiscernible] as a result, move from 30% to 25%. But it's good to look at certain commendable action that the Central Bank is taking to see the revamp on restructuring of the IoT of the business. And what we've seen so far is that we are beginning to see increased rules, how many to the market from [ IMG ] that were not seen before. So the initiation from CBN [indiscernible] in terms of the [ IMG ] of rules have now been [ plot ]. So those flows are coming steadily before we have like a nonstructural system for IoT. Somebody who is up somewhere. I recall that there was a particular company somewhere in Europe. That said, look, deposit, you can do transfer because I receive anywhere. I mentioned our NIM and why they have not given how [indiscernible]. So a lot [indiscernible] offset of the money transfer system, having will dealing with the [ dollar ]. But now, how that is coming into the market? That's one. Two, CBN also look at the exports business. Well since it just [indiscernible] export longer budget [indiscernible]. You will recall that earlier in the year, CBN made a pronouncement that if you don't repatriate your [indiscernible] process, which is the liable down, there's going to be heavy sanction. And Soji, I tell you since policy announcement, we've seen increase inflow, that a repatriation of foreign exchange and its profit as forecast. If you look at that these are a positive development. The third one, which is one the biggest is the [indiscernible] oil prices recovery. Oil price recovery has it [ 7 ]. Before COVID, we never saw $7 [indiscernible] in the course of last year. We never saw $7 oil. I look at up right. But since $7 higher just 1 year of the anniversary of COVID, that's some remarkable recovery. And we think -- I mean, we hope it's [indiscernible]. What does that mean for us? To say, look, back out the [ OpEx ] production cost of 25%. If you back that out [indiscernible] 5%, that will give you effectively, maybe something in the region of about maybe 50s or so. However, what I mean is that increased oil price means there's more accretion into the result. If you have this accretion into the result, for us, exchange rate are the current level where it is looks like something that appears, what you say, appropriate. So see, we expect that there will be more dollars available to do business over time, over time. And as a result, we don't see a strong volatility in terms of [indiscernible] compared to where it is. But looking at where it is, what will be saying, again, remember to [indiscernible] have improved. Why [ FPIs ] probably in the past of last year, [ FPI ] is kind of -- we heard from doing additional business for the contract. But now even where [indiscernible], it's like a welcome development for [ FPIs ]. If you come in, you get your 1-year of [indiscernible] at 10% this and when compared internationally for as long as SG&A rates, not so far volatility in the SG&A rate. So I think we appear to be in the stronger, better build than we were at the [indiscernible] time of the COVID. So our position will be that we don't -- there is no crystal ball for us to look into assets well. But based on what we see, in terms of the positive and tailwind, which will be moderately even. I will leave Henry to deal with the question on the higher items. And Tope will deal with the agency banking. And while there is still its asset quality.

All right. Thank you, Soji for question. You're right, for us, for our upstream assets, we only ensure that there is hedges to site production and to mitigate biggest slide in oil prices. And for most of our clients in this order book for 6 months and thereabout, and they mature at different times. We also ensure that this is mature, we look at. We ensure that these contracts are renewed at majority for different tenure. So we'd like to assure you that for upstream assets, there's often [indiscernible] and they are renewed as mature on the continual business.

The question for us as [indiscernible]. Yes, we'll redo the hedges before the uptick we saw in the price, actual last year, March of last year. [indiscernible] we see we are ahead we are ahead so that we can wish for them. That's downside [indiscernible] to move in tandem with the upward movements to [indiscernible]. The way it is it's a lot cheaper for you to now pass, protecting the downside at the levels of the high 50s and early 60s. But with prices before below 60, you couldn't do that. We are going to operate [indiscernible]. So we are in a comfortable place. So for us strengthen the oil and gas, and make sure that we have appropriate [indiscernible] to protect the downside. So Tope will take on the agency bank.

Thank you, Soji on agency bank, let me say that we launched the agency banking platform in June 2019. We did this specifically to push retail banking solutions virtually on bank. And in addition to support the potential inclusion drive for the Central Bank. And I can say that between 2019 and 2020, we have seen significant growth in the value of transactions. We've seen significant growth in volume of transactions, very, very significant growth. And we've seen our agents grow also across the country. We're seeing banking services go to areas where before now had no access to -- in banking services and solutions. Now we're using technology to drive this. So that is the banking growth, the income is as a result of this drive. With this we continue, we are working in [indiscernible] area that with the investments we made in IT, we're going to see a lot of more growth in this regard. So the future is a lot of agency banking. Thank you.

On the issue of asset quality. At the beginning of the pandemic, there was a lot of of fear and apprehension around setting set top. The first one being [indiscernible]. The second one was transportation actually. The third one was [indiscernible] obviously, business. From the public sector, essentially was revenues are going to stay growth maintenance of last mode public institutions in [indiscernible] revenue generated by [indiscernible]. But that won't actually didn't happen materially because we did the valuation, but adjustment of the value of the naira amounts have go into [indiscernible] actually remain in [indiscernible]. So the differential review was not anything to [indiscernible] about. Yes, transportation, we saw some stress because there was complete lockdown for a very long time. But since the lockdown, it is -- movements are [indiscernible] across boundaries. Then those competing revenue as well as improved business. [indiscernible] obviously [indiscernible] for now [indiscernible] in our books. Our exposure to that sector is always significant.

Yes, let me say that in terms of transportation the total exposure is [indiscernible] maybe not of the NGN 400 million. So we don't -- we don't see [indiscernible]. Over the years, there have been talks about or concern on certain sectors. One of them was power. I remember [ 2020 ] that was announced with power. Everybody [indiscernible] Right now, which credit to Central Bank, they're informed in the power sector that have seen some differential pricing in terms of retiring, putting more money in the [indiscernible] been able to wrap [indiscernible] -- sorry, we had ins. It means that [indiscernible] got can now see much more than they were doing before. So of [indiscernible] funded repayment of up to date. The [indiscernible], what we are seeing is improved collection that will be due to them under a properly ring-fenced arrangement. [indiscernible] in the cost of improvement revenue due to [indiscernible] provide them some form of funding support for the deployment of [indiscernible]. The first phase is on as well as second phase. It's going to be a special way to be different for power. So this [indiscernible] that should improve that. So the concern about power, I would say, with credit to CBN, power sector has been strengthened. The other, sector that we are concerned, yes, I probably, there's going to be [indiscernible] because it was active as soon as we see the IOC asset sale to us if the markets moved against and we faced a decline in the price with the commodity price. For [indiscernible], it's like when you did this office [indiscernible]. The first thing is survival. And when you have that survival instinct, you are looking for how to navigate. Somehow, we have managed to -- we continue to navigate. And where we are, we have an [indiscernible] be put in place. No matter how small no matter the [indiscernible], it provides some protection. Price run into also help us in terms of collection into [indiscernible] will see improvement. So however, nobody can tell what will happen tomorrow. The most important thing for us is to ensure that when we see as [indiscernible], when we see volatilities, we'll move quickly to dimension what the volatility is about, what are the key drivers. And that informs us in [indiscernible] how to deal with it while talking to our only [indiscernible].

The next question is a follow-up from Ronak Gadhia from EFG Hermes.

My question is on deposit growth. I see on your slide, you are factoring in deposit growth of around 10%. I just wanted to know how feasible that is because last year, Zenith Bank and the system in general, attracted a lot of liquidity from institutional investors due to changing normal regulations. Given that these investors are now seeking investments elsewhere through T-bills and whatnot, isn't there a scenario that the overall deposits for the system could decline this year?

Okay. Thank you very much, Ronak. I think what we need to bear in mind is the fact that Nigeria is a huge market. Contract of NGN 200 million, and we tend to undermine the strength of the economy, which is what all of us need to have to change in the narrative because we have what's [indiscernible] the markets. If we look at the initiatives being pursued by CBN and to some extent the fiscal authority, everything is geared towards promoting growth in the economy. And remember to that, deposit mobilization is also transactional. And what we have seen is at least an acceleration in terms of expansion of credit to the retailer and the SMEs. So the fact you have the retail loan expanded, there what you expect, the deposit to have expanded. The financial inclusion agenda to bring it on bank, which we also posted through agency [indiscernible] is also promoting growth. It's not to promote deposit. And if we are also serving country, no matter of recession, so quickly in Q4, well, although with [indiscernible] and we think, activities will begin to pick. Even if it's going to be tough we do the heavy lifting. That is our job. That is our job. Nobody is [indiscernible] this tomorrow. When the pandemic through -- when we're doing this call about this time last year, we did about pandemic. When the pandemic hit, we were looking at it but [indiscernible]. You will change, no because you simply want to change. You change because you want to survive. So that's survival instinct drives us. It changes all that we expect that no matter what. We should be able to grow -- we should be able to grow the deposit base. It's going to be difficult? Yes. We are not going to do very little change. So we'll be able to achieve it. That is the advantage given the market, we think is achievable.

The next question comes from [indiscernible] from RMB.

Congrats on your results. I just wanted you to please speak a bit more about your stage 2 loans. I know you said the coverage, effective coverage of 8%. But then I look at the fact that you could increase your impairment tax on the P&L significantly. So I'm just wondering, should we -- should this coverage the bit low at 8%, considering your view on the operating environment by increasing your impairment charge?

Okay. I leave the CFO to answer the question.

Thank you very much for your question. As I explained earlier, the stage 2 loans has increased the gross amount that's move from stage 1 to and stage 2. that is we are adequately accounted for the elevated risk environment. So the next question is to do the impairment charge on them. In doing the impairment charge on them, you have to consider the collaterals that you are holding. The NPVs of the collaterals, the recoverability of collaterals [indiscernible] collaterals. If you put all these things together, without determine the amount of impairments you're going to have. So if you are a lower impairment on the stage 2 loans, what it means is you have a good quality collaterals for those categories of loans. So your impairment will be low. Just part of having good collateral, we still went ahead to say, this has to be stage 2, and it has to be stage 2, so properly account for their elevated risk environment. So what should you expect going forward? The amount of impairment issue [indiscernible] is a function of the industry, the customer and the collateral we are holding for the various exposures we have. So in our own way of trying to ensure a very reasonable cost of risk, we determine suitable collaterals, and we measure and monetize the need for us to transform more collateral of our position, we do that, and we ensure we have appropriate documentation of ours. Yes. Thank you.

Due to time, the final question we can take is from Timothy Wambu from Absa.

Just to ask this question. I don't know if it was answered before. Wanted to understand the reason for the drop in our admitted fees despite the growth in the loans? Second question is on the -- what sort of deposit mix by client are you working towards a notice that your retail deposits have been grown as a proportion of total deposits. [indiscernible] 32%, what [indiscernible] are you targeting? And then lastly, any concerns with the rule of [indiscernible] subsidy on your fuel and maintenance costs in your OpEx?

Thank. Okay. Thank you very much. I think -- the first question, so I'll leave my colleagues will answer the other one. I'm sure they [indiscernible] is on the dropping credit-related fees and [indiscernible] let's explain it here. It grows in the loan book. Part of it came from the translation effect of the dollar related loan. Therefore, we are an existing dollar loan in the books. That we translated at [indiscernible] end of the year we translated at the [ 400 ]. So there are no -- for an ongoing growth, we are not going to attract fees. So the fees you see there relate to fresh disbursement, which will add, maybe renew our fees, which [indiscernible]. Bear in mind when the COVID environment where asset yield drop as aggressive as we are, with respect to fees on facility, so that reflects essentially the market dynamics. So the other question, I don't know if you don't mind, can you will repeat the questions.

The second question I was asking was what ideal client mix deposits are you working toward? I'm mostly looking at your retail deposits, which continues to grow as a proportion of your total deposits. So what are you working towards, like around that [ 2% ], it's grown from 26% in 2019? And the third question is any concerns given the removal of fuel subsidy on your OpEx, given that I can see that fuel and maintenance is one of the large components in your OpEx part?

Okay. Thank you. Dennis will deal with the issue on the deposit mix. And Tope will also deal with -- Tope will deal with the deposit mix. Dennis will deal with the if we are part of the removal of our request subsidy.

Okay. We said it before the deposit mix. We saw a very massive flow in savings. So that means it contributed a lot of that, and that's as a result of what we have been in the retail space where we focus a lot on custom on volume across the various channels, and that significantly through our savings. And then going forward, we'll be [indiscernible] we're going to get more innovative on particular platforms. And we are also -- I mentioned earlier on the agency banking and other very major source of spread for us when it comes to expanding our retail platforms and footprints. Product wins we're doing digital loans, where we are -- customers can actually assess loans by dialing the U.S. [indiscernible] code and the less of 5 minutes that post a loan. So basically, we expect to see more innovations, and this will drive further what will be in the space. There is growth, customer numbers we grow, and that also drives our card issuances and in addition, our [indiscernible] channels. So that's the way forward for the retail. Hopefully, we see more growth in that regard. Thank you.

The removal of the fuel subsidy actually is a national issue. But as if we ourselves have an idea that some of these days will come. A separate early impact on the construction of the [indiscernible] energy center, which will essentially be using gas to provide an electricity for all of us. That essentially [indiscernible] of energy going forward. This is [indiscernible]. He said [indiscernible]. In addition to that, Cost savings is actually one of our focus this 2021. So whatever it is, that means to make sure that we reduce energy consumption, either by we offer [indiscernible] reducing well, unnecessary use of -- unnecessary movement as well as renewable energy sources. Solar panels, if you respect the value -- the cost solar panels are coming down a gradually. So we are seeing ourselves also migrating some of the operations, the [indiscernible] of bank operations, so solar rather than use the conventional energy sources. These are the late sense, will average the rights that we'll see in the cost of the fuel. Thank you very much.

And let me say that Zenith Bank is one of the signatures to the United Nations program initiative. And by [indiscernible] the signature to this initiative on principles of sustainable banking committed [indiscernible] that I talked about sale, the head of it [indiscernible]. They look at not to have to [indiscernible] and see at the end of it, we should be able to -- we should disable not less than [indiscernible] generators. So we have that central part then. And the branch is outside [indiscernible] and all around the country. We have the solar panel. So at night, we don't have need to run in generators when power supply from the main source goes up. We fall back on our solar panel. All our ATMs across the country is 95% of our ATMs are powered by solar panel. So as then given the COVID environment, although we are recovering, we don't also have traffic from point-to-point as we'll continue to engage reporting. So we expect that our well on energy consumption should go down this year. It should go down this year as soon as a -- yes, [indiscernible] activation our energy center.

Thank you. due to time, we cannot take any further questions. Ebenezer, can I hand back to you for closing comments.

Okay. Thank you, ladies and gentlemen, for the very insightful questions. And in closing, we like to assure you that we will do all that is possible to ensure that we continue to deliver superior performance. And it's important for us to also look at certain imagine scenarios and the market that we see. The most important of them is message from recession in Q4. The expectation is that there will be some growth in Q1 no matter how muted our growth will be. We've also seen from the GDP fourth quarter reports. We've seen improvement coming from agri and the service sector especially ICT. So the average sector improvement shows or confirm the impact of the various initiative that the Central Bank has been pursuing with respect to supporting agri. And once that is sustained, we expect that improvement in agri is coming to deal with food inflation. It's also a bit of positive for the country. Improving assets yield and with the expertise improvement in terms of the supply of foreign [indiscernible], for foreign portfolio investors to take another look at the country and more banking [indiscernible] and now for [indiscernible] we sold for. Then there is also the upcoming legislation. Now on general standing instruction with respect to loan recovery. So the fact that we are going to get a parliamentary to that should also improve our loan recovery and also [indiscernible] bank to do incremental lending. There's also the special commencement of the African Continental free trade area. We should see improvement in African trade. Indeed, it is said that in traffic countries by now at the moment [indiscernible] the whole idea is to see how Africa country within itself. So we are going to interrogate all these scenarios and find out opportunities. Of course, we are not forgetting our retail and digital banking, where we double down. We will double down. So it's going to be a difficult year, but we think we'll be able to deal with the difficulties. We should be able to continue to right the country and indeed general transition out of COVID. So we thank you very much for your questions, and thank you for listening. On behalf of my team, we say thank you and continue to look at the investment in Zenith and continue to look at investments in the country. The country remains a very, very substantial and very significant results, especially with the tailwinds that we expect could drive activities in 2021. Thank you.

Thank you very much, sir. Ladies and gentlemen, that does conclude today's conference. Thank you for joining us. You may now disconnect your lines.