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

Amazon plans to lay off about 10,000 employees starting this week

Amazon.com Inc is planning to lay off about 10,000 people in corporate and technology jobs starting as soon as this week, the New York Times reported on Monday, citing people with knowledge of the matter. The cuts will focus on the e-commerce giant's devices unit, which houses voice-assistant Alexa, as well as its retail division and human resources, according to the report, which also said the total number of layoffs remains fluid. The company did not immediately respond to a Reuters request for comment. As of Dec. 31 last year, Amazon had about 1,608,000 full-time and part-time employees. Amazon joins a bandwagon of U.S. companies making deep cuts to its employee base to brace for a potential economic downturn. Rad also:  Tech Boot Camp: Cadbury Nigeria Empowers over 9000 Kids Last week, Facebook-parent Meta Platforms said it would cut more than 11,000 jobs, or 13% of its workforce, to rein in costs. (Reporting by Tiyashi Datta in Bengaluru; Editing by Arun Koyyur)

Prices of Maize, Rice and other food commodities to rise in December, 2022 – Survey

One of Nigeria’s commodities market players, AFEX has forecasted a surge in prices of six food commodities, namely maize, paddy rice, sorghum, soybean, cocoa and sesame by the end of December 2022 to the first half of 2023. AFEX’s forecast is contained in its 2022 Wet Season Crop Production Report unveiled at a hybrid event hosted at the firm’s head office in Abuja on Wednesday. The report said maize which faces a projected decline in production levels of up to 14% will reach a higher average price point ranging between N214, 980/metric ton ($486.72) and N220,000/metric ton ($498.09) by the end of the fourth quarter (Q4) 2022. According to the report, this is compared to an average price of ($475.97) N210, 229/metric ton in Q4 2021, and projected that soybean price will rise by 6% by May 2023. David Ibidapo, AFEX head of market data and research who presented the report said annual crop production research seeks to provide robust market intelligence for agriculture value chain player

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.”