Zenith Bank Plc has published its unaudited financial report for the third quarter of 2023 which showed triple-digit growth of 114 per cent from N620.6 billion reported in Q3′ 2022 to N1.33 trillion in Q3′ 2023.
The bank said in the report presented to the Nigerian Exchange (NGX) that the performance “demonstrates the Group’s resilience and strong market share despite a very challenging macroeconomic environment.”
The bank also said the triple-digit growth in the top line also enhanced the bottom line, as it recorded a 149 per cent year-on-year (YoY) increase in profit before tax, growing from N202.5 billion in Q3 2022 to N505 billion in Q3′ 2023 while profit after tax also grew by 149 per cent from N174.3 billion to N434.2 billion in the same period.
It explained that growth in the top line arose from both interest income and non-interest income.
Interest income, according to the report, grew in the current period by 72 per cent to N670.9 billion from N390.8 billion in Q3 2022, while non-interest income grew by 186 per cent from N212 billion to N607.2 billion.
“The growth in profit is similarly attributable to the twin effects of the improvement in interest and non-interest income.
“Interest income increased because of the growth in risk assets as well as the effective pricing thereon. The non-interest income growth is largely driven by the revaluation gain due to the unification of exchange rates during the year,” the report stated,
The cost-to-income ratio reduced from 55.8% in Q3 2022 to 37.8% in the current period while total assets grew by 48 per cent from N12.3 trillion to N18.2 trillion in the period ended 30 September 2023, mainly driven by growth in customers’ deposits.
Customers’ deposits grew by 49 per cent from N8.98 trillion in December 2022 to N13.38 trillion in September 2023.
The growth in customers’ deposits cuts across both corporate and retail segments with the savings portfolio (all currencies) growing from N2.7 trillion in December 2022 to N4.6 trillion in September 2023.
Gross loans increased by 48 per cent from N4.1 trillion in December 2022 to N6.1 trillion in September 2023 due to the revaluation of foreign currency denominated loans as well as the growth in local currency loans to strategic and thriving sectors of the economy.
The non-performing loan ratio improved to 3.8 per cent in Q3, 2023, while capital adequacy ratio improved marginally to 20.1 per cent from 19.8 per cent while liquidity ratio declined from 75 per cent to 68 per cent.
The said it “is optimistic of finishing the year 2023 strong, with focus on sustainable quick wins that would boost growth across all business segments and enhance stakeholder value.’
