Cynthia Ezekwe
Despite an extremely challenging macroeconomic environment, Zenith Bank has demonstrated remarkable resilience and strong market share, as reflected in its Profit Before Tax (PBT), which grew by 149 per cent Year on Year (YoY), from N202.5 billion in Q3 2022 to N505 billion in Q3 2023.
The bank’s unaudited third-quarter financial results, filed with the Nigerian Exchange (NGX), show that Profit After Tax (PAT) also grew by 149 per cent from N174.3 billion to N434.2 billion in the same period.
In addition, interest income increased by 72 per cent to N670.9 billion, up from N390.8 billion in Q3 2022, while non-interest income increased by 186 per cent to N607.2 billion, compared to N212 billion in the prior year.
The growth in profit can be attributed to the increase in both interest and non-interest income. Interest income increased due to growth in risk assets and effective pricing. Meanwhile, the growth in non-interest income was driven largely by the revaluation gain from the unification of exchange rates during the year.
According to the financials, the cost-to-income ratio declined from 55.8 per cent in Q3 2022 to 37.8 per cent in the current period, reflecting the bank’s cost optimisation efforts. While impairment levels increased due to the conservative approach and increased provisions in a heightened risk environment,as the bank took a proactive stance in building a counter-cyclical buffer to mitigate any potential volatility in exchange rates.
Total assets increased by 48 per cent from N12.3 trillion to N18.2 trillion as of 30 September 2023, primarily driven by growth in customer deposits. Customer deposits grew by 49 per cent from N8.98 trillion in December 2022 to N13.38 trillion in September 2023. This growth was experienced across both corporate and retail segments, with the savings portfolio growing from N2.7 trillion to N4.6 trillion in the same period.
The bank’s gross loans grew by 48% from N4.1 trillion in December 2022 to N6.1 trillion in September 2023, as a result of the revaluation of foreign currency denominated loans and growth in local currency loans to strategic and thriving sectors of the economy.
Zenith Bank said it remains optimistic about a strong finish to the year 2023, with a focus on sustainable quick wins that will drive growth across all business segments and enhance stakeholder value.
