Zenith Bank gross earnings hits N967.3bn in H1 2023

COMFORT EKELEME, Business Editor

Zenith Bank Plc has released its audited results for the half-year ended 30 June 2023, recording an astounding triple-digit growth of 139per cent in gross earnings from N404.8 billion reported in Half Year (H1) 2022 to N967.3 billion in H1 2023.

This is a clear demonstration of its resilience and strong market share despite a very challenging macroeconomic environment and persistent headwinds.

According to the bank’s audited half-year financial results presented Monday to the Nigerian Exchange (NGX), the triple-digit growth in the top line also spurred the bottom line as the Group recorded a 169per cent Year on Year (YoY) increase in Profit Before Tax (PBT), growing from N130 billion in H1 2022 to N350.4 billion in H1 2023.

Profit After Tax (PAT) also grew by triple digits, growing by 162per cent from N111.4 billion to N291.7 billion in the same period.

The growth in gross earnings arose from both interest income and non-interest income.

According to the report, interest income grew by 72per cent from N241.7 billion in H1 2022 to N415.4 billion in H1 2023, while non-interest income grew by 246per cent from N149 billion to N515.7 billion.

The growth in interest income is attributed to the impact of both the growth and repricing of risk assets, while the liberalization of the foreign exchange market during the period spurred the growth in non-interest income as revaluations gains improved significantly.

In terms of efficiency, cost-to-income ratio improved from 58per cent to 38.5per cent in the current period on the back of an enhanced income line.

The liberalization of the foreign exchange market coupled with the heightened risk environment resulted in cost of risk growing from 1.4per cent to 8.8per cent.

Cost of funding also grew YoY from 1.4per cent in H1 2022 to 2.6per cent in H1 2023 because of the spike in interest rates between both periods as interest expense grew from N57 billion in H1 2022 to N153.6 billion in H1 2023.

Total assets grew by 31per cent from N12.3 trillion to N16.0 trillion in December 2022, mainly driven by growth in customers’ deposits and the devaluation of the local currency.

Customers’ deposits grew by 30per cent from N9.0 trillion in December 2022 to N11.6 trillion in June 2023.

Loans and advances also grew by 32per cent from N4.12 trillion in December 2022 to N5.38 trillion in June 2023 partly due to the revaluation of the foreign currency denominated loans as well as growth in local currency loans.

Non-performing loans ratio improved from 4.3per cent to 3.9per cent in December 2022 despite the deterioration of the macros and heightened risk environment because of the currency mix of risk assets. Capital adequacy ratio improved from 19.8per cent to 22.0per cent, while liquidity ratio reduced from 75per cent to 61per cent in the current period.  Both prudential ratios are still well above regulatory thresholds.

The reorganisation into a holding company structure has advanced, as the Group adds new verticals to its businesses and expand 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.