Zenith Bank Plc has released its audited results for the six months ended 30 June 2023. Gross earnings increased by an incredible 139%, or triple-digits, from the N404.8 billion reported in the 2022 to the N967.3 billion recorded in H1 2023. This demonstrates its resilience and substantial market share despite the challenging macroeconomic climate and persistent headwinds.
According to the bank’s audited half-year financial results, which were presented to the Nigerian Exchange (NGX) on Monday, September 11, 2023, the bottom line benefited from the top line’s triple-digit growth as well because the group’s profit before tax increased by 169% Year on Year (YoY), from N130 billion in H1 2022 to N350.4 billion in H1 2023.
Profit after tax increased by triple digits as well, rising by 162% in the same period from N111.4 billion to N291.7 billion.
Gross earnings increased due to both interest and non-interest income. Interest income increased by 72% from N241.7 billion in the first half of 2022 to N415.4 billion in the first half of 2023, while non-interest income increased by 246% from N149 billion to N515.7 billion.
The impact of both the growth and repricing of risk assets is linked to the increase in interest revenue. During the period, the deregulation of the foreign exchange market boosted non-interest income growth as revaluation gains improved significantly.
In terms of efficiency, the cost-to-income ratio decreased from 58% to 38.5% in the present period due to an improved income line. The cost of risk increased from 1.4% to 8.8% as a result of the liberalization of the foreign exchange market and the increased risk environment.
The cost of finance increased year on year (YoY) from 1.4% in H1 2022 to 2.6% in H1 2023 as interest expenditure increased from N57 billion in H1 2022 to N153.6 billion in H1 2023.
Total assets increased by 31% from N12.3 trillion to N16.0 trillion in December 2022, owing primarily to increases in customer deposits and the depreciation of the local currency. Deposits from customers increased by 30%, from N9.0 trillion in December 2022 to N11.6 trillion in June 2023.
Loans and advances increased by 32% from N4.12 trillion in December 2022 to N5.38 trillion in June 2023, owing to the revaluation of foreign currency loans as well as growth in local currency loans.
Despite deterioration in macroeconomic indicators and a heightened risk environment due to the currency mix of risk assets, the non-performing loan ratio dropped from 4.3% to 3.9% in December 2022.
In the present period, the capital adequacy ratio increased from 19.8% to 22.0%, but the liquidity ratio decreased from 75% to 61%. Both prudential ratios are still significantly higher than regulatory thresholds.
The Group’s reorganization into a holding company structure is progressing as it adds new verticals to its companies and expands into new frontiers. As the year unfolds, the Group will stay responsive to changes in the fiscal and monetary conditions in order to sustain growth across all of its business sectors 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.
In addition, the bank was named the Most Valuable Banking Brand in Nigeria by Banker Magazine in the Top 500 Banking Brands 2020 and 2021, as well as 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, Champion Newspaper’s Bank of the Year 2021, New Telegraph Newspaper’s Bank of the Year 2022, and SERAS Awards’ Most Responsible Organisation in Africa 2021.