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.

Labels:

Comments

Post a Comment

Say something about this

Popular posts from this blog

President Jonathan "ENDS QUARREL" With Obasanjo

President Goodluck Jonathan seems to have improved on his relationship with former president, Olusegun Obasanjo, after sending him a rare message of commiseration on the death of his sister, Adunni Oluniola Eweje-Obasanjo. Since Obasanjo’s letter to the president went viral in December 2013, the president stopped all forms of felicitation or commiseration with the former head of state. Before then, though, Jonathan had “nothing but the greatest respect for Obasanjo” and he had said he would not probe his benefactor. “The president has nothing but the greatest respect for Chief Obasanjo’s very notable contributions to national growth and development over many years and far from taking offence or seeking retaliation, will always welcome objective criticism and advice from the very highly-regarded elder statesman,” Reuben Abati, special adviser to the president on media and publicity, wrote in 2013. Evidence of a sour relationship between the duo came to fore in December, when Abati, ...
2 comments
Click here to Read more »

Fabric that stores information invisibly, without electronics

A new type of smart fabric developed at the University of Washington could pave the way for jackets that store invisible passcodes and open the door to your apartment or office. The UW computer scientists have created fabrics and fashion accessories that can store data -- from security codes to identification tags -- without needing any on-board electronics or sensors. Using magnetic properties of conductive thread, University of Washington researchers are able to store data in fabric. In this example, the code to unlock a door is stored in a fabric patch and read by an array of magnetometers. As described in a paper presented Oct. 25 at the Association for Computing Machinery's User Interface Software and Technology Symposium (UIST 2017), they leveraged previously unexplored magnetic properties of off-the-shelf conductive thread. The data can be read using an instrument embedded in existing smartphones to enable navigation apps. "This is a completely electronic-f...
Post a Comment
Click here to Read more »

NEWS: Officials involved in N8bn currency scam dismissed – CBN

CBN Governor, Mr. Godwin Emefiele The Central Bank of Nigeria on Monday says it has dismissed or suspended some of its six officials that were involved in the N8bn currency fraud in some of its branches. The apex bank in a statement in Abuja by the Director, Corporate Communications Department, Ibrahim Mu’azu, stated that some of the middle-level officers among the accused had been summarily dismissed or placed on indefinite suspension, depending on gravity of their offence. It said, “The Central Bank of Nigeria will like to inform the general public of the chronology of events that led the Management of the CBN to hand over some unscrupulous staff to the Economic and Financial Crimes Commission for prosecution.
Post a Comment
Click here to Read more »