Zenith Bank Plc has released its unaudited results for the third quarter ended 30 September 2023, showing a stunning 114% increase from N620.6 billion in Q3 2022 to N1.33 trillion in Q3 2023. Despite an extremely adverse macroeconomic context, this performance reflects the Group’s durability and solid market share.
According to the bank’s unaudited third quarter financial results presented to the Nigerian Exchange (NGX), the bank’s triple-digit growth in the topline boosted the bottom line, as the Group recorded a 149% Year on Year (YoY) increase in profit before tax, rising from N202.5 billion in Q3 2022 to N505 billion in Q3 2023. Profit after tax increased 149% within the same period, from N174.3 billion to N434.2 billion.
The growth in the topline resulted from both interest and non-interest income. Interest income increased by 72% in the current quarter, from N390.8 billion to N670.9 billion in Q3 2022, while non-interest income increased by 186%, from N212 billion to N607.2 billion.
Profit grew is also related to the dual effects of higher interest and non-interest income. Interest income increased as risk assets increased in value and their effective pricing increased. The non-interest income growth is largely driven by the revaluation gain due to the unification of exchange rates during the year. The cost-to-income ratio fell from 55.8% in Q3 2022 to 37.8% in Q3 current period.
Total assets grew by 48% from N12.3 trillion to N18.2 trillion in the period ended 30 September 2023, mainly driven by growth in customers’ deposits. Customers’ deposits grew by 49% from N8.98 trillion in December 2022 to N13.38 trillion in September 2023. The growth in customers’ deposits cuts across both corporate and retail segments with the savings portfolio (all currencies) growing from N2.7 trillion in December 2022 to N4.6 trillion in September 2023.
Gross loans increased by 48% from N4.1 trillion in December 2022 to N6.1 trillion in September 2023 due to the revaluation of foreign currency denominated loans as well as the growth in local currency loans to strategic and thriving sectors of the economy.
The non-performing loan ratio improved to 3.8% in the period ended 30 September 2023, which is well below prudential limits. Net interest margin (NIM) printed at 5.6% from 6.2% reported in September 2022 due to low yield in government securities. Capital adequacy ratio improved marginally to 20.1% from 19.8% while liquidity ratio declined from 75% to 68%. However, all our prudential ratios remain above regulatory thresholds.
The Group is optimistic of finishing the year 2023 strong, with focus on sustainable quick wins that would boost growth across all business segments and enhance stakeholder value.
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, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the bank was named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021; Bank of the Year 2023; and Retail Bank of the Year for three consecutive years from 2020 to 2022. 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.
