Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2023, recording an astounding triple-digit growth of 139% in gross earnings from N404.8 billion reported in H1 2022 to N967.3 billion in H1 2023. This is a clear demonstration of its resilience and strong market share despite a very challenging macroeconomic environment and persistent headwinds.
According to the bank's audited half-year financial results presented to the Nigerian Exchange (NGX) on Monday, 11th September 2023, the triple-digit growth in the top line also spurred the bottom line as the Group recorded a 169% Year on Year (YoY) increase in profit before tax, growing from N130 billion in H1 2022 to N350.4 billion in H1 2023. Profit after tax also grew by triple digits, growing by 162% from N111.4 billion to N291.7 billion in the same period.
The growth in gross
earnings arose from both interest income and non-interest income. Interest income grew by 72% from N241.7
billion in H1 2022 to N415.4 billion in H1 2023, while non-interest income grew
by 246% from N149 billion to N515.7 billion. The growth in interest income is
attributed to the impact of both the growth and repricing of risk assets. The liberalization of the foreign exchange
market during the period spurred the growth in non-interest income as
revaluations gains improved significantly.
In terms of efficiency,
cost-to-income ratio improved from 58% to 38.5% in the current period on the
back of an enhanced income line. The
liberalization of the foreign exchange market coupled with the heightened risk
environment resulted in cost of risk growing from 1.4% to 8.8%. Cost of funding
also grew YoY from 1.4% in H1 2022 to 2.6% in H1 2023 because of the spike in
interest rates between both periods as interest expense grew from N57 billion
in H1 2022 to N153.6 billion in H1 2023.
Total assets grew by
31% from N12.3 trillion to N16.0 trillion in December 2022, mainly driven by
growth in customers’ deposits and the devaluation of the local currency.
Customers’ deposits grew by 30% from N9.0 trillion in December 2022 to N11.6
trillion in June 2023.
Loans and advances also
grew by 32% from N4.12 trillion in December 2022 to N5.38 trillion in June 2023
partly due to the revaluation of the foreign currency denominated loans as well
as growth in local currency loans. Non-performing loans ratio improved from
4.3% to 3.9% in December 2022 despite the deterioration of the macros and
heightened risk environment because of the currency mix of risk assets. Capital
adequacy ratio improved from 19.8% to 22.0%, while liquidity ratio reduced from
75% to 61% in the current period. Both
prudential ratios are still well above regulatory thresholds.
The reorganisation into
a holding company structure has advanced, as the Group adds new verticals to
its businesses and expand into new frontiers.
As the year progresses, the Group will continue to remain dynamic in
anticipating and responding to the changes in the fiscal and monetary
environments in order to sustain growth across all its business segments and
markets.
Zenith Bank's track
record of excellent performance has continued to earn the brand numerous awards
including being recognised as the Number One Bank in Nigeria by Tier-1 Capital,
for the 14th consecutive year, in the 2023 Top 1000 World Banks Ranking
published by The Banker Magazine; Best Commercial Bank, Nigeria, for three
consecutive years from 2021 to 2023, in the World Finance Banking Awards; Best
Corporate Governance Bank, Nigeria in the World Finance Corporate Governance
Awards 2022 and 2023; Bank of the Year (Nigeria) in The Banker's Bank of the
Year Awards 2020 and 2022; Best Bank in Nigeria, for three consecutive years
from 2020 to 2022, in the Global Finance World's Best Banks Awards; Best in
Corporate Governance' Financial Services' Africa, for four successive years
from 2020 to 2023, by the Ethical Boardroom; Most Sustainable Bank, Nigeria in
the International Banker 2023 Banking Awards; 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 and Retail Bank of the Year, for three consecutive
years from 2020 to 2022, at the BusinessDay Banks and Other Financial
Institutions (BAFI) Awards. Similarly, Zenith Bank was named Bank of the Decade
(People's Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by Champion
Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most
Responsible Organisation in Africa 2021 by SERAS Awards.
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