Skip to main content

ZENITH BANK SURMOUNTS HEADWINDS WITH STRONG Q3 2022 TOPLINE AND BOTTOM LINE PERFORMANCE


Zenith Bank Plc has announced its unaudited results for the third quarter ended 30 September 2022, recording a remarkable double-digit growth of 20% in gross earnings from NGN518.7 billion reported in Q3 2021 to NGN620.6 billion in Q3 2022. This performance demonstrates the Group’s resilience against a challenging macroeconomic environment. 

According to the unaudited account presented to the Nigerian Exchange (NGX), the growth in the topline was driven by interest and non-interest income growth. Interest income grew by 27% from NGN308.8 billion to NGN390.8 billion, driven majorly by growth in risk assets and an improvement in pricing. This also strengthened Earnings Per Share (EPS) by 9% to NGN5.55.

This double-digit growth in the topline also aided the bottom line, as the Group also recorded a 13% year-on-year (YoY) increase in profit before tax, growing from NGN179.8 billion in Q3 2021 to NGN202.5 billion in Q3 2022. Profit after tax equally grew by 9% from NGN160.6 billion to NGN174.3 billion in the same period. 

Growth in non-interest income was enabled by the Group’s retail strategy, with continued substantial customer acquisition driving transactions, deposit growth and growth in electronic banking income.

Due to inflationary pressure and the rising cost of doing business, operating costs grew by 17%. However, this was below the growth in gross earnings (20%), thereby facilitating the double-digit growth in the bottom line.

The continuing elevated yield environment affected the cost of funding which increased from 1.4% to 1.7% in the current period. This affected the net interest margin (NIM), which dropped due to the immediate implementation of higher yields on interest-bearing liabilities. However, the NIM is expected to see a correction in subsequent quarters as the assets side is repriced correspondingly.

Total assets grew by 20% from NGN9.45 trillion to NGN11.34 trillion in 2022, mainly driven by growth in customers’ deposits. Customer deposits grew by 24% from NGN6.47 trillion in December 2021 to NGN8.04 trillion in September 2022 due to the market’s confidence in the brand.

Loans and advances also grew by 16% from NGN3.5 trillion in December 2021 to NGN4.06 trillion in September 2022, boosting the Group’s interest income and displaying the Group’s appetite for high-yielding risk assets creation. As a result of this growth, the capital adequacy ratio reduced from 21% to 19.1%, while the liquidity ratio reduced from 71.6% to 68.9%. Both prudential ratios remain very strong and are still well above regulatory thresholds.

In the year’s final quarter, management is determined to sustain the strong performance trajectory while adapting to changes in the regulatory environment and focusing on creative initiatives to mitigate inflationary trends, foreign exchange pressures and the growing competitive environment.

Read also: Winfest Campaign: Access Bank to Splash over N1bn on Customers

Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, including being recognised as Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best Commercial Bank, Nigeria 2021 and 2022 in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; Best in Corporate Governance’ Financial Services’ Africa, for three consecutive years from 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards. Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.

Similarly, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment”, and the coveted “Most Responsible Organisation in Africa.

Comments

Popular posts from this blog

The Nigeria Police Force Recruitment 2016 Online Application

THE NIGERIA POLICE FORCE RECRUITMENT ONLINE APPLICATION STARTS TODAY 1st of April, 2016 and Closes 13th of May, 2016. The Police Service Commission (PSC) invites applications from suitably qualified Nigerians for enlistment into the Nigeria Police Force in the following categories: Cadet Assistant Superintendent of Police (ASP) Cadet Inspector of Police  Police Constable You are therefore advice to carefully choose the category you are eligible for, as multiple applications would lead to disqualifications and You MUST have a functional/working email address before you proceed with your application! APPLY FOR CADET ASP For Both Specialist and General Duty Candidates must possess at least B.SC., B.A., B.TECH., HND or an equivalent degree from a reputable University or Polytechnic. Apply Now   APPLY FOR CADET INSPECTOR For Both Specialist and General Duty Candidates must possess at least one of the following from a reputable Polytechnic or College o...

Photos: Papa Ajasco opens baby factory

Papa Ajasco & Company, Nigeria’s Most Watched TV Comedy, has commenced a new season of amusing adventures, including a story in which Papa Ajasco, Pa James, Miss Pepeye, Boy Alinco, and Mama Ajasco establish and operate an illegal ‘Baby Factory’; with hilarious consequences. According to the Managing Director of WAP,Wale Adenuga Jr.,“This new season of PAPA AJASCO & COMPANY is packed with several entertaining stories. They really get themselves into some tight situations; but these experiences always leave them, as well as the viewers,with new important lessons and of course uncontrollable laughter.”

James Rodriguez says he might raise to depart Real madrid for Manchester in January window

James Rodriguez has aforesaid he is considering soliciting for a move removed from Real capital of Spain within the January transfer window. The 25-year-old South American country international, below contract till 2018, spent the whole lot of Madrid's Club World Cup campaign on the bench.   Rodriguez, who joined for €80 million after the 2014 World Cup, has struggled for taking part in time in recent months. And talking to reporters once the 4-2 CWC final conclusion over Kashima Antlers, he aforementioned he "cannot assure" anybody that he won't be going away the Bernabeu next month. "Things aren't going as i'd need," he said. "But I actually have had offers and that i have these seven days [over the winter break] to suppose well concerning everything. "I need to remain, however you need to believe everything. I cannot assure you what is going to happen, as i would like to play a lot of." James Rodriguez has become pissed off ...