Zenith Bank Plc has reported a growth of 169 per cent in profit before tax to N350.4 billion in its audited half year for the period ended June 30, 2023.
The bank recorded triple-digit growth of 139 per cent in gross earnings from N404.8 billion reported in H1 2022 to N967.3 billion in H1 2023, a clear demonstration of its resilience and strong market share despite a very challenging macroeconomic environment and persistent headwinds.
Also, the bank proposed an interim dividend of N15.698 billion, representing 50 kobo per share for the period under review.
The bank’s half year results released on the Nigerian Exchange Limited showed that the Group achieved a year on year (YoY) growth in gross earnings of 139 per cent from N404.8 billion reported in H1 2022 to N967.3 billion in H1 2023.
Profit before tax grew by 169 per cent from N130 billion in H1 2022 to N350.4 billion in H1 2023, while profit after tax up by 162 per cent from N111.4 billion to N291.7 billion in the same period.
Interest income grew by 72 per cent from N241.7 billion in H1 2022 to N415.4 billion in H1 2023, while non-interest income grew by 246 per cent from N149 billion to N515.7 billion.
Zenith Bank stated that, “the growth in interest income is attributed to the impact of both the growth and the effective pricing of our risk assets. The unification of the foreign exchange rates during the period spurred the growth in non-interest income as revaluations gains improved significantly.
“In terms of efficiency, our cost-to-income ratio improved from 58 per cent to 38.5 per cent in the current period on the back of enhanced income. Impairment levels increased significantly in recognition of the heightened risk environment resulting in the cost of risk growing from 1.4 per cent to 8.8 per cent.”
Cost of funding also grew YoY from 1.4 per cent in H1 2022 to 2.6 per cent in H1 2023. Total assets grew by 31 per cent from N12.3 trillion to N16.0 trillion in December 2022, mainly driven by growth in customers’ deposits and the revaluation of the foreign currency deposits.
Customers’ deposits grew by 30 per cent from N9.0 trillion in December 2022 to N11.6 trillion in June 2023, while loans and advances also grew by 32 per cent from N4.12 trillion in December 2022 to N5.38 trillion in June 2023.
The non-performing loans ratio improved from 4.3 per cent to 3.9 per cent in December 2022 despite the deterioration of the macroeconomic variables and heightened risk environment, because of the currency mix of our risk assets book.
The bank also said: “the reorganisation into a holding company structure is still in progress as the Group adds new verticals to its businesses and expands into new frontiers. As the year progresses the Group will continue to remain dynamic in anticipating and adapting to the changes in the fiscal and monetary environments in all our markets to sustain growth across all business segments.”
The reorganisation into a holding company structure has advanced, as the Group adds new verticals to its businesses and expands 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.
