Zenith Bank grows profit by 8.55% to N174.3bn in Q3 2022 amid rising inflation

Zenith Bank Plc has released its interim consolidated and separate financial report for the third quarter (Q3) 2022, which shows that the bank grew its profit by 8.55 percent to N174.331 billion in nine months, from N160.594 billion in Q3, 2021.

The bank accomplished this despite soaring inflation. Nigeria’s inflation rate hit a new 17-year high of 20.77 percent in September 2022, up from 20.52 percent in August.According to the financial report, gross earnings increased by 19.66 percent to N620.5 billion, from N518.5 billion in 2021. As investment securities in treasury bills, bonds and others rose, the bank’s interest and similar income rose by 26.52 percent to N390.7 billion, from N308.8 billion in 2021.

Zenith Bank reported a 45.54 percent increase in interest and similar expenses at N107.8 billion in the third quarter of 2022 from N74.098 billion in 2021. Also, net interest income rose by 20.51 percent to N282.907 billion, from N234.746 billion in the same period of 2021.

On the back of a rise in credit-related fees and income, electronic banking income, and trade transaction income, amongst others, the bank’s net fee and commission income increased to N100.057 billion in the third quarter of 2022 from N78.296 billion in the year-earlier period.Electronic banking income alone, which stood at N36.069 billion from N23.993 billion in 2021, accounted for 50 percent growth and contributed 36.04 percent of the net fees and commission income. Electronic banking income represents income taken on transactions processed via electronic channels such as ATM, POS, and mobile banking, as well as credit and debit card transactions.

The bank recorded growth in other areas of its financial transactions. Profit before tax grew by 12.64 percent to N202.549 billion in 2022 from N179.810 billion in 2021; impairment charges grew by 28.81 percent to N37.096 billion in 2022 from N28.798 billion in 2021; operating expenses grew by 25.34 percent to N171.666 billion in 2022 from N136.954 billion in 2021; and income tax expense grew by 46.84 percent to N28.218 billion from N19.216 billion the previous year.