BY GRACE AIRHULE
Zenith Bank Plc recorded impressive results for the half-year ended 30 June 2022, posting double-digit growth of 17 percent in gross earnings to N405 billion compared to N346 billion recorded in the corresponding period of 2021, according to the bank’s audited half-year financial results presented to the Nigerian Exchange on Tuesday.
The bank explained that the growth was underpinned by a 19 percent Year-on-Year (YoY) growth in interest income to N242 billion from N204 billion and an 18 percent YoY growth in non-interest income to N149 billion from N127 billion in the year-earlier period.
It noted that 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.
The bank’s Profit Before Tax (PBT) grew 11 percent YoY to N130 billion from N117 billion. Earnings per share (EPS) also grew to N3.55 from N3.38 over the same six-month period.
The Group also recorded an 11 percent year-to-date (YtD) increase in total customer deposits to close the period at N7.15 trillion. The retail strategy of the Group continues to deliver outstanding results as retail deposits grew by 17percent YtD to N2.13 trillion from N1.82 trillion. Retail activities also supported the growth recorded in fees on electronic products which grew by 45 percent YoY to N25 billion from N17 billion.
“Despite the elevated yield environment, the cost of funds increased only marginally to 1.4 percent in June 2022 from 1.3 percent in June 2021. 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 percent from 6.4 percent in June 2021,” the bank said in a statement.
The bank’s total assets rose to N10.12 trillion at the end of June 2022 from N9.45 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 percent YtD, from N3.5 trillion to N3.7 trillion. This was achieved at a moderate NPL ratio of 4.4 percent (FYE 2021: 4.2 percent) and cost of risk of 1.4 percent (June 2021: 1.3 percent). Prudential ratios such as liquidity and capital adequacy also remained stable and well-above regulatory thresholds at 60.5 percent and 21.0 percent, respectively.
Meanwhile, 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 returns to stakeholders,” the statement noted.
Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, including being recognised as 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.
