According to the bank's audited
half-year financial results presented to the Nigerian Exchange (NGX) on
Tuesday, 23rd August 2022, this growth was underpinned by a 19% YoY growth in
interest income from NGN204 billion to NGN242 billion and an 18% YoY growth in
non-interest income from NGN127 billion to NGN149 billion. The growth in
interest income was driven by the modest increase in the loan book and improved
interest margins. The increase in non-interest income attests to the Group’s
success in its income diversification strategy.
Profit before tax (PBT) grew 11%
year-on-year (YoY) from NGN117 billion to NGN130 billion. Earnings per share
(EPS) also grew from NGN3.38 to NGN3.55 over the same 6-month period.
The Group also recorded an 11%
year-to-date (YtD) increase in total customer deposits to close the period at
NGN7.15 trillion. The retail strategy of the Group continues to deliver
outstanding results as retail deposits grew by 17% YtD from NGN1.82 trillion to
NGN2.13 trillion. Retail activities also supported the growth recorded in fees
on electronic products which grew by 45% YoY from NGN17 billion to NGN25
billion.
Despite the elevated yield environment,
the cost of funds increased only marginally from 1.3% in June 2021 to 1.4% in
June 2022. The increase in the cost of funds was lower than the increase in
yields on interest-generating assets, giving rise to an improved Net Interest
Margin (NIM) of 7.1% from 6.4% in June 2021.
Total assets rose to NGN10.12 trillion
at the end of June 2022 from NGN9.45 trillion at the end of December 2021. Despite
the headwinds imposed by the operating environment, the Group grew its risk
assets as gross loans grew by 5% YtD, from NGN3.5 trillion to NGN3.7 trillion.
This was achieved at a moderate NPL ratio of 4.4% (FYE 2021: 4.2%) and cost of
risk of 1.4% (June 2021: 1.3%). Prudential ratios such as liquidity and capital
adequacy also remained stable and well-above regulatory thresholds at 60.5% and
21.0% respectively.
The Group is focused on advancing its
digital banking strategy anchored on a strong technology base, and intends to
consolidate on the gains achieved in prior years across all business segments.
Combined with the Group’s industry leadership, we expect this to drive improved
performance and deliver enhanced returns to stakeholders.
Zenith Bank's track record of excellent
performance has continued to earn the brand numerous awards, including being recognised
as Number One Bank in Nigeria by Tier-1 Capital, for the 13th
consecutive year, in the 2022 Top 1000 World Banks Ranking published by The
Banker Magazine; Best Bank in Nigeria, for three consecutive years from 2020 to
2022, in the Global Finance World's Best Banks Awards; Best Commercial Bank,
Nigeria 2021 and 2022 in the World Finance Banking Awards; Best Corporate
Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022;
Best in Corporate Governance 'Financial Services' Africa, for three consecutive
years from 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank, Nigeria
and Best Innovation In Retail Banking, Nigeria in the International Banker 2022
Banking Awards. Also, the Bank emerged
as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500
Banking Brands 2020 and 2021, Bank of the Year (Nigeria) in The Banker's Bank
of the Year Awards 2020 and Retail Bank of the year at the BusinessDay Banks
and Other Financial Institutions (BOFI) Awards 2020 and 2021.
Similarly, Zenith Bank was honoured as
Bank of the Decade (People's Choice) at the ThisDay Awards 2020 and emerged
winner in four categories at the Sustainability, Enterprise, and Responsibility
(SERAS) Awards 2021, carting home the awards for "Best Company in
Reporting and Transparency", "Best Company in Infrastructure Development",
"Best Company in Gender Equality and Women Empowerment", and the
coveted "Most Responsible Organisation in Africa.
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