Zenith Bank Plc has announced its audited results for the year ending 31 December, 2022, achieving double-digit growth of 24 per cent in gross earnings from N765.6 billion reported in 2021 to N945.5 billion in 2022.
This is contained the audited financial results for the 2022 financial year presented to the Nigerian Exchange (NGX).
According to the bank, the double-digit growth in gross earnings was driven by a 26% year-on-year (YoY) growth in interest income from N427.6 billion to N540.2 billion and a 23% YoY growth in non-interest income from NGN309 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% YoY from N106.8 billion to N173.5 billion, respectively.
The bank explained that 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 was attributed to all products and deposit segments (corporate and retail), thus consolidating the bank’s market leadership and indicating customers’ trust.
In 2023, bank said it 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 anounced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.