Zenith Bank Plc has reported a triple-digit growth of 139 % in gross earnings from N404.8 billion recorded in H1 2022 to N967.3 billion in H1 2023.
The bank disclosed this in its audited half-year financial results presented to the Nigerian Exchange (NGX) yesterday.
The financial report also showed that the group recorded a 169% year on year (YoY) increase in profit before tax, growing from N130 billion in H1 2022 to N350.4 billion in H1 2023 while profit after tax was 162% from N111.4 billion to N291.7 billion in the same period.
The growth in gross earnings arose from both interest income and non-interest income.
Interest income grew by 72% from N241.7 billion in H1 2022 to N415.4 billion in H1 2023, while non-interest income grew by 246% from N149 billion to N515.7 billion.
The bank attributed the growth in interest income to the impact of both the growth and repricing of risk assets while the liberalisation of the foreign exchange market during the period spurred the growth in non-interest income as revaluations gains improved significantly.
In terms of efficiency, the report said cost-to-income ratio improved from 58% to 38.5% in the current period on the back of an enhanced income line.
Total assets grew by 31% from N12.3 trillion to N16.0 trillion in December 2022, mainly driven by growth in customers’ deposits and the devaluation of the local currency.
Customers’ deposits grew by 30% from N9.0 trillion in December 2022 to N11.6 trillion in June 2023.
Loans and advances also grew by 32% from N4.12 trillion in December 2022 to N5.38 trillion in June 2023 partly due to the revaluation of the foreign currency denominated loans as well as growth in local currency loans.
Non-performing loans ratio improved from 4.3% to 3.9% in December 2022 despite the deterioration of the macros and heightened risk environment because of the currency mix of risk assets.
Capital adequacy ratio improved from 19.8% to 22.0%, while liquidity ratio reduced from 75% to 61% in the current period. Both prudential ratios are still well above regulatory thresholds.
“As the year progresses, the Group will continue to remain dynamic in anticipating and responding to the changes in the fiscal and monetary environments in order to sustain growth across all its business segments and markets,” the bank stated.
