Chairman Zenith Bank, Jim Ovia
By Our Reporter
In a clear demonstration of its industry leadership and consistency in providing superior
financial returns, Zenith Bank Plc has announced its audited results for the half-year ended
30 June 2022, recording an astounding double-digit growth of 17% in gross earnings from
N346 billion reported in H1 2021 to N405 billion in H1 2022. This is in spite of a very
challenging macroeconomic environment.
According to the bank’s audited half-year financial results presented to the Nigerian
Exchange (NGX) on Tuesday, 23rd August 2022, this growth was underpinned by a 19%
YoY growth in interest income from NGN204 billion to NGN242 billion and an 18% YoY
growth in non-interest income from NGN127 billion to NGN149 billion. The growth in interest
income was driven by the modest increase in the loan book and improved interest margins.
The increase in non-interest income attests to the Group’s success in its income
diversification strategy.
Profit before tax (PBT) grew 11% year-on-year (YoY) from NGN117 billion to NGN130
billion. Earnings per share (EPS) also grew from NGN3.38 to NGN3.55 over the same 6-
month period.
The Group also recorded an 11% year-to-date (YtD) increase in total customer deposits to
close the period at NGN7.15 trillion. The retail strategy of the Group continues to deliver
outstanding results as retail deposits grew by 17% YtD from NGN1.82 trillion to NGN2.13
trillion. Retail activities also supported the growth recorded in fees on electronic products
which grew by 45% YoY from NGN17 billion to NGN25 billion.
Despite the elevated yield environment, the cost of funds increased only marginally from
1.3% in June 2021 to 1.4% in June 2022. The increase in the cost of funds was lower than
the increase in yields on interest-generating assets, giving rise to an improved Net Interest
Margin (NIM) of 7.1% from 6.4% in June 2021.
Total assets rose to NGN10.12 trillion at the end of June 2022 from NGN9.45 trillion at the
end of December 2021. Despite the headwinds imposed by the operating environment, the
Group grew its risk assets as gross loans grew by 5% YtD, from NGN3.5 trillion to NGN3.7
trillion. This was achieved at a moderate NPL ratio of 4.4% (FYE 2021: 4.2%) and cost of
risk of 1.4% (June 2021: 1.3%). Prudential ratios such as liquidity and capital adequacy also
remained stable and well-above regulatory thresholds at 60.5% and 21.0% respectively.
The Group is focused on advancing its digital banking strategy anchored on a strong
technology base, and intends to consolidate on the gains achieved in prior years across all
business segments. Combined with the Group’s industry leadership, we expect this to drive
improved performance and deliver enhanced
