Zenith Bank Plc has released its audited financial report for the half-year ended 30 June 2022 which shows the bank recording double-digit growth of 17 per cent in gross earnings increasing form N346 billion reported in H1 2021 to N405 billion in H1 2022.
The bank said in a statement that the growth was underpinned by a 19 per cent year-on-year (YoY) growth in interest income from N204 billion to N242 billion and an 18 per cent YoY growth in non-interest income from N127 billion to N149 billion.
It added that the growth in interest income was driven by the modest increase in the loan book and improved interest margins.
In the report presented to the Nigerian Exchange on August 23, 2022, the bank said profit before tax grew 11 per cent YoY from N117 billion to N130 billion while earnings per share upped from N3.38 to N3.55 over the same six-month period.
The Zenith group also recorded an 11 per cent year-to-date (YtD) increase in total customer deposits to close the period at N7.15 trillion.
The statement also disclosed that the group’s retail strategy of the continued to deliver outstanding results as retail deposits grew by 17 per cent YtD from N1.82 trillion to N2.13 trillion.
Retail activities also supported the growth recorded in fees on electronic products which grew by 45 per cent YoY from N17 billion to N25 billion.
Despite the elevated yield environment, the bank said cost of funds increased only marginally from 1.3 per cent in June 2021 to 1.4 per cent in June 2022.
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 of 7.1 per cent from 6.4 per cent in June 2021.
Total assets rose to NGN10.12 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 bank said its risk assets as gross loans grew by 5 per cent YtD, from N3.5 trillion to N3.7 trillion.
“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 added.
