Zenith Bank Plc unveiled its financial results for 2023, showcasing a remarkable performance. The bank witnessed a staggering 202.3% year-on-year surge in profit before tax, reaching an impressive NGN795.96 billion. Similarly, post-tax profits settled at NGN676.91 billion, marking a substantial 202.3% increase compared to the previous year.
Gross earnings experienced a robust growth of 125.4% year-on-year and a 202.3% surge in post-tax profits.
This exceptional performance was fueled by balanced growth across various income streams. Both funded and non-funded incomes saw significant increases of 111.9% and 141.2% year-on-year, respectively.
Furthermore, Zenith Bank’s board proposed a final dividend of NGN3.50 per share, up from NGN2.90 per share in the previous fiscal year. This translates to a dividend yield of 7.6% (excluding withholding tax), based on the latest closing price of NGN41.55 per share on April 8th.
The bank’s interest income reached NGN1.14 trillion in the fiscal year 2023, driven by substantial growth in earning assets, primarily driven by a 50.8% year-on-year expansion in loans and customer advances, amounting to NGN6.56 trillion. This growth, coupled with an improved yield-on-assets of 7.6% compared to 5.4% in 2022, contributed to the surge in interest income.
Consequently, income from loans and customer advances witnessed a significant 81.4% year-on-year increase, totalling NGN671.92 billion. Additionally, income from investment securities saw a robust growth of 148.3% year-on-year, reaching NGN390.93 billion, further supporting the bank’s funded income generation.
