Zenith Bank Boosts Gross Earnings by 24% in 2022
Zenith Bank Plc has announced its audited results for the year ending December 31, 2022, achieving an impressive double-digit growth of 24% in gross earnings from N765.6 billion reported in the previous year to N945.5 billion in 2022.
The earnings surge came despite the persistent challenging macroeconomic environment and headwinds that spooked the financial market and overall growth last year.
The bank’s gross earnings was driven by a 26% year-on-year growth in interest income from N427.6 billion to N540.2 billion and a 23% year-on-year growth in non-interest income from N309 billion to N381 billion.
Profit before tax also grew by 2% from N280.4 billion to N284.7 billion in the current year. The increase in profit before tax was due to the significant growth in all the income lines.
Impairments grew by 107% from N59.9 billion to N124.2 billion, while interest expense grew 63% from N106.8 billion to N173.5 billion, respectively.
The impairment growth, which also resulted in an increase in the cost of risk (from 1.9% in 2021 to 3.3% in the current year), was due to the impact of Ghana’s sovereign debt restructuring programme.
The growth in interest expense increased the cost of funds from 1.5% in 2021 to 1.9% in 2022 due to hikes in interest rates globally. Customer deposits increased by 39%, growing from N6.47 trillion in the previous year to N8.98 trillion in the current year.
The growth in customer deposits came from all products and deposit segments (corporate and retail), thus consolidating the bank’s market leadership and indicating customers’ trust.
The continued elevated yield environment positively impacted the bank’s Net-Interest-Margin (NIM), which grew from 6.7% to 7.2% due to an effective repricing of interest-bearing assets. Operating expenses grew by 17%, but growth remains below the inflation rate.
Total assets increased by 30%, growing from N9.45 trillion in 2021 to N12.29 trillion, mainly driven by growth in customer deposits.
With the steady and continued recovery in economic activities, the Group prudently grew its gross loans by 20%, from N3.5 trillion in 2021 to N4.1 trillion in 2022, which increased the Non-Performing Loan (NPL) ratio modestly from 4.2% to 4.3%.
The capital adequacy ratio decreased from 21% to 19%, while the liquidity ratio improved from 71.2% to 75%. Both prudential ratios are well above regulatory thresholds.
In 2023, the Group intends to expand its frontiers as it also reorganises into a holding company structure, adding new verticals to its businesses and growing in all its chosen markets, both locally and internationally.
As a testament to its commitment to shareholders, the bank has announced a proposed final dividend pay-out of N2.90 per share, bringing the total dividend to N3.20 per share.
In recognition of its track record of excellent performances, Zenith Bank was recognised 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; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022.
It clicked Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards with numerous local and international accolades. #Zenith Bank Boosts Gross Earnings by 24% in 2022
