Zenith Bank headquarters
By Our Reporter
Zenith Bank Plc has announced its unaudited results for the first quarter ending 31st March2023, with an exceptional double-digit growth of 41% in Gross Earnings, increasing from₦191.5 billion in Q1 2022 to ₦270 billion in Q1 2023.
The unaudited statement of account submitted to the Nigerian Exchange (NGX) on Friday, 28thApril 2023, indicated that the significant double-digit growth in the topline also boosted thebottom line, with the Group experiencing an impressive 27% year-on-year (YoY) increase inProfit Before Tax (PBT), rising from ₦68 billion in Q1 2022 to ₦86.6 billion in Q1 2023. ProfitAfter Tax (PAT) also grew by 13% from ₦58.2 billion to ₦66 billion during the same period.The growth in the topline was propelled by substantial increases in both interest income andnon-interest income. Interest income surged by 52% from ₦126.4 billion in Q1 2022 to ₦191.6billion in Q1 2023, while non-interest income expanded by 27% from ₦57.2 billion to ₦72.8billion.
The growth in interest income can be attributed to the impact of risk asset repricing,while the increase in non-interest income primarily resulted from loan recoveries and foreigncurrency revaluation gains.Regarding efficiency, the cost-to-income ratio improved from 55% to 53.4% in the currentperiod, supported by a bolstered income line.
The cost of risk also moderated from 0.8% to0.7% during the same period due to an enlarged loan book. However, the cost of fundingdoubled YoY from 1.3% in Q1 2022 to 2.7% in Q1 2023, owing to a considerable spike ininterest rates between both periods as interest expense grew from ₦25.8 billion in Q1 2022 to₦70.8 billion in Q1 2023. This impacted the net interest margin (NIM), which reduced from7.3% to 6.9% over the same period.Total assets expanded by 9% from ₦12.29 trillion in December 2022 to ₦13.36 trillion in March2023, primarily driven by growth in customer deposits and other funding sources, such asborrowings. Customer deposits increased by 2% from ₦8.98 trillion in December 2022 to₦9.14 trillion in March 2023.Loans and advances also experienced marginal growth of 1% from ₦4.12 trillion in December2022 to ₦ 4.15 trillion in March 2023 as customers continued to adjust to the full impact ofhigher rates on risk assets.
Both the capital adequacy and liquidity ratios remained robust at19.5% and 72%, respectively, with both prudential ratios comfortably exceeding regulatorythresholds.In 2023, the Group will maintain its focus on sustainable growth across all business segmentsas it restructures into a holding company, introduces new verticals to its businesses, andexpands into new frontiers.
Zenith Bank’s consistent record of outstanding performance has garnered numerous accoladesfor the brand, including being acknowledged as the Number One Bank in Nigeria by Tier-1Capital for the 13th consecutive year in the 2022 Top 1000 World Banks Ranking published byThe Banker Magazine.
The bank has also received the Bank of the Year (Nigeria) title in TheBanker’s Bank of the Year Awards 2020 and 2022, as well as the Best Bank in Nigeria awardfor three consecutive years, from 2020 to 2022, in the Global Finance World’s Best BanksAwards.
