In a remarkable display of resilience and market dominance, Zenith Bank Plc has unveiled its audited results for the first half of 2023, showcasing an astonishing triple-digit growth in both its topline and bottomline figures.
The financial giant reported gross earnings that surged by an impressive 139%, leaping from N404.8 billion in H1 2022 to an astounding N967.3 billion in H1 2023.
Zenith Bank’s audited half-year financial results, presented to the Nigerian Exchange (NGX) on September 11, 2023, revealed a substantial 169% Year on Year (YoY) increase in profit before tax, soaring from N130 billion in H1 2022 to a staggering N350.4 billion in H1 2023. Even more remarkably, the bank’s profit after tax experienced triple-digit growth, surging by 162% from N111.4 billion to a formidable N291.7 billion in the same period.
This impressive growth in gross earnings was attributed to a significant boost in both interest income and non-interest income. Interest income experienced a 72% increase, rising from N241.7 billion in H1 2022 to N415.4 billion in H1 2023, driven by the growth and repricing of risk assets. Non-interest income, on the other hand, witnessed a remarkable 246% surge, soaring from N149 billion to an impressive N515.7 billion, largely attributed to revaluation gains that improved significantly, thanks to the liberalization of the foreign exchange market.
Zenith Bank also exhibited efficiency in its operations, as its cost-to-income ratio improved from 58% to 38.5%, primarily due to enhanced income. However, the heightened risk environment caused the cost of risk to rise from 1.4% to 8.8%. Additionally, the cost of funding increased YoY, moving from 1.4% in H1 2022 to 2.6% in H1 2023, largely influenced by the spike in interest rates between the two periods.
The bank’s total assets saw a substantial growth of 31%, climbing from N12.3 trillion to N16.0 trillion in December 2022, driven by the expansion of customer deposits and the devaluation of the local currency. Customer deposits increased by 30% from N9.0 trillion in December 2022 to N11.6 trillion in June 2023. Furthermore, loans and advances grew by 32% during the same period, reaching N5.38 trillion in June 2023.
Despite a challenging economic landscape, Zenith Bank managed to improve its non-performing loans ratio, reducing it from 4.3% to 3.9% in December 2022, partly due to the currency mix of risk assets. Capital adequacy ratio also saw an improvement, rising from 19.8% to 22.0%, while liquidity ratio decreased from 75% to 61% in the current period, both remaining comfortably above regulatory thresholds.
The bank’s reorganization into a holding company structure has been advancing steadily, as it expands into new business verticals and ventures into new markets. As the year progresses, Zenith Bank remains committed to adapting dynamically to changes in the fiscal and monetary environments, ensuring sustained growth across all its business segments and markets.
Zenith Bank’s consistent track record of excellent performance has garnered numerous accolades, including being recognized 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, among several other prestigious awards.