Zenith Bank Plc has released its audited results for the fiscal year ending December 31, 2023, showing a spectacular triple-digit growth of 125% in gross earnings from NGN945.6 billion in 2022 to NGN2.132 trillion in 2023. According to the audited financial figures for the fiscal year 2023 presented to the Nigerian Exchange (NGX), this exceptional triple-digit growth in gross earnings resulted in a 180% YoY increase in Profit Before Tax (PBT) from NGN284.7 billion in 2022 to NGN796 billion in 2023. Profit After Tax (PAT) increased by 202% between NGN223.9 billion and NGN676.9 billion in the fiscal year ending December 31, 2023.
The increase in gross earnings is mostly attributable to higher interest and non-interest revenue. Interest income rose by 112%, from NGN540 billion in 2022 to NGN1.1 trillion in 2023. Non-interest income increased by 141%, from NGN381 billion to NGN918.9 billion during the same time.
The increase in interest revenue is related to the growth in the amount of risk assets and their effective repricing, as well as the year-over-year increase in the yield of other interest-bearing instruments. Non-interest income increased due to strong trading earnings and benefits from foreign currency revaluation.
Due to the high interest rate environment, the cost of funding climbed from 1.9% in 2022 to 3.0% in 2023, while interest expenses soared by 135%, from NGN173.5 billion in 2022 to NGN408.5 billion in 2023. Despite a 32% increase in operating expenses in 2023, the Group’s cost-to-income ratio decreased dramatically, from 54.4% in 2022 to 36.1% in 2023, thanks to increased top-line performance. Return on Average Equity (ROAE) climbed by 118% from 16.8% in 2022 to 36.6% in 2023, driven by higher gross earnings, as the Group aimed to improve shareholder returns. During the same period, return on average assets (ROAA) increased by 95%, from 2.1% to 4.1%.
Customer deposits expanded by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023, thereby strengthening the Group’s market position in major corporate and retail deposit segments. Its retail strategy continues to pay off, as retail deposits now account for 46% of total deposits (up from 44% in 2022) and climbed by 77% from NGN3.97 trillion in 2022 to NGN7.04 trillion in 2023, reinforcing improved customer confidence in the Zenith Bank brand.
Total assets climbed by 66%, from NGN12.3 trillion in 2022 to NGN20.4 trillion in 2023, owing mostly to growth in total deposits and the revaluation of foreign currency deposits. Gross loans increased by 71% from NGN4.1 trillion in 2022 to NGN7.1 trillion in 2023, owing to the revaluation of foreign currency loans and the expansion of local currency risk assets.
As a result of the disciplined and diligent approach to risk asset creation and management, loan growth had no significant impact on the Non-Performing Loans (NPL) ratio, which increased marginally from 4.3% to 4.4% despite the increased risk environment and challenging operating environment, demonstrating the Group’s resilience in the face of headwinds and a challenging macroeconomic environment.
To demonstrate its commitment to shareholders, the bank has suggested a final dividend payout of NGN3.50 per share, bringing the total dividend to NGN4.00 per share.
In 2024, the Group will complete its transformation to a holding company structure, which is expected to position it favorably for investigating potential Fintech opportunities while strengthening its digital and retail banking efforts. Furthermore, the Group (zenith bank) is taking urgent steps to achieve the new minimum NGN500 billion equity capital requirement in order to maintain its international authorisation within the timeframe set by the Central Bank of Nigeria (CBN). This will boost its footprint in major markets, allowing it to maintain its stance for long-term growth and value addition for stakeholders.
Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, including being recognised as the Best Bank in Nigeria for the fourth time in five years, from 2020 to 2022 and in 2024, in the Global Finance World’s Best Banks Awards; the Best Bank for Digital Solutions in Nigeria in the Euromoney Awards 2023; being listed in the World Finance Top 100 Global Companies in 2023; and being recognised as the Number One Bank in Nigeria by Tier-1 C.
The Best Corporate Governance Bank, Nigeria at the World Finance Corporate Governance Awards 2022 and 2023; Bank of the Year (Nigeria) at the Banker’s Bank of the Year Awards 2020 and 2022; Best in Corporate Governance’ Financial Services’ Africa for four consecutive years from 2020 to 2023, by the Ethical Boardroom. The International Banker 2023 Banking Awards recognize Nigeria’s most sustainable bank, as well as the best commercial bank in Nigeria and the best innovation in retail banking in Nigeria.
Zenith Bank
In conclusion, Zenith 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 years in a row, from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards.
Zenith Bank was also 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 the New Telegraph Newspaper, and Most Responsible Organisation in Africa 2021 by the SERAS Awards.
Source: Press.com
