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Zenith Bank Plc has announced its unaudited results for the first quarter ending 31st March 2023, 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, 28th April 2023, indicated that the
significant double-digit growth in the topline also boosted the bottom line,
with the Group experiencing an impressive 27% year-on-year (YoY) increase in
Profit Before Tax (PBT), rising from ₦68 billion in Q1 2022 to ₦86.6 billion in
Q1 2023. Profit After 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 and non-interest income. Interest
income surged by 52% from ₦126.4 billion in Q1 2022 to ₦191.6 billion in Q1
2023, while non-interest income expanded by 27% from ₦57.2 billion to ₦72.8
billion. 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 foreign currency revaluation gains.
Regarding efficiency, the cost-to-income ratio
improved from 55% to 53.4% in the current period, supported by a bolstered
income line. The cost of risk also moderated from 0.8% to 0.7% during the same
period due to an enlarged loan book. However, the cost of funding doubled YoY
from 1.3% in Q1 2022 to 2.7% in Q1 2023, owing to a considerable spike in
interest 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 from 7.3% to 6.9% over the same period.
Total assets expanded by 9% from ₦12.29 trillion in
December 2022 to ₦13.36 trillion in March 2023, primarily driven by growth in
customer deposits and other funding sources, such as borrowings. 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 December 2022 to ₦4.15 trillion in March 2023 as
customers continued to adjust to the full impact of higher rates on risk
assets. Both the capital adequacy and liquidity ratios remained robust at 19.5%
and 72%, respectively, with both prudential ratios comfortably exceeding
regulatory thresholds.
In 2023, the Group will maintain its focus on
sustainable growth across all business segments as it restructures into a
holding company, introduces new verticals to its businesses, and expands into
new frontiers.
Zenith Bank's consistent record of outstanding
performance has garnered numerous accolades for the brand, including being
acknowledged as the 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. The bank has also received the Bank of the Year (Nigeria)
title in The Banker's Bank of the Year Awards 2020 and 2022, as well as the
Best Bank in Nigeria award for three consecutive years, from 2020 to 2022, in
the Global Finance World's Best Banks Awards.
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