2022 Quarter 3: Zenith Bank Records Remarkable Double-Digit Growth in Gross Earnings

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 earningsfrom NGN518.7 billion reported in Q3 2021 to NGN620.6 billion in Q3 2022. Thisperformance demonstrates the Group’s resilience against a challenging macroeconomicenvironment. According to the unaudited account presented to the Nigerian Exchange (NGX), thegrowth in the topline was driven by interest and non-interest income growth. Interestincome grew by 27% from NGN308.8 billion to NGN390.8 billion, driven majorly bygrowth in risk assets and an improvement in pricing. This also strengthened EarningsPer Share (EPS) by 9% to NGN5.55.This double-digit growth in the topline also aided the bottom line, as the Group alsorecorded a 13% year-on-year (YoY) increase in profit before tax, growing fromNGN179.8 billion in Q3 2021 to NGN202.5 billion in Q3 2022. Profit after tax equallygrew 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 continuedsubstantial customer acquisition driving transactions, deposit growth and growth inelectronic banking income.Due to inflationary pressure and the rising cost of doing business, operating costs grewby 17%. However, this was below the growth in gross earnings (20%), thereby facilitatingthe double-digit growth in the bottom line.The continuing elevated yield environment affected the cost of funding which increasedfrom 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-bearingliabilities. However, the NIM is expected to see a correction in subsequent quarters asthe assets side is repriced correspondingly.Total assets grew by 20% from NGN9.45 trillion to NGN11.34 trillion in 2022, mainlydriven by growth in customers’ deposits. Customer deposits grew by 24% from NGN6.47trillion in December 2021 to NGN8.04 trillion in September 2022 due to the market’sconfidence in the brand.Loans and advances also grew by 16% from NGN3.5 trillion in December 2021 toNGN4.06 trillion in September 2022, boosting the Group’s interest income and displayingthe 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 from71.6% to 68.9%. Both prudential ratios remain very strong and are still well aboveregulatory thresholds.In the year’s final quarter, management is determined to sustain the strong performancetrajectory while adapting to changes in the regulatory environment and focusing oncreative initiatives to mitigate inflationary trends, foreign exchange pressures and thegrowing competitive environment.Zenith Bank’s track record of excellent performance has continued to earn the brandnumerous awards, including being recognised as Number One Bank in Nigeria by Tier-1Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Rankingpublished by The Banker Magazine; Best Bank in Nigeria, for three consecutive yearsfrom 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best CommercialBank, Nigeria 2021 and 2022 in the World Finance Banking Awards; Best CorporateGovernance Bank, Nigeria in the World Finance Corporate Governance Awards 2022;Best in Corporate Governance’ Financial Services’ Africa, for three consecutive yearsfrom 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank, Nigeria and BestInnovation 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 BankerMagazine Top 500 Banking Brands 2020 and 2021, Bank of the Year (Nigeria) in TheBanker’s Bank of the Year Awards 2020 and Retail Bank of the year at the BusinessDayBanks and Other Financial Institutions (BOFI) Awards 2020 and 2021.Similarly, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at theThisDay Awards 2020 and emerged winner in four categories at the Sustainability,Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “BestCompany in Reporting and Transparency”, “Best Company in InfrastructureDevelopment”, “Best Company in Gender Equality and Women Empowerment”, and thecoveted “Most Responsible Organisation in Africa.