Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2022, recording an astounding double-digit growth of 17% in gross earnings from N346 billion reported in H1 2021 to N405 billion in H1 2022, demonstrating its industry leadership and consistency in providing superior financial returns. Despite a very challenging macroeconomic environment, glamsquad reports.
This growth was supported by a 19% YoY increase in interest income from NGN204 billion to NGN242 billion and an 18% YoY increase in non-interest income from NGN127 billion to NGN149 billion, according to the bank’s audited half-year financial results presented to the Nigerian Exchange (NGX) on Tuesday, August 23rd, 2022. Interest income increased due to a modest increase in the loan book and improved interest margins. The rise in non-interest income demonstrates the Group’s success in implementing its income diversification strategy.
Profit before tax (PBT) increased 11% year on year (YoY) to NGN130 billion. Over the same six-month period, earnings per share (EPS) increased from NGN3.38 to NGN3.55.
The Group also increased total customer deposits by 11% year to date (YtD) to NGN7.15 trillion at the end of the period. The Group’s retail strategy continues to produce outstanding results, with retail deposits increasing by 17% year on year, from NGN1.82 trillion to NGN2.13 trillion. Retail activities also contributed to the increase in fees on electronic products, which increased by 45% year on year from NGN17 billion to NGN25 billion.
Despite the high yield environment, the cost of funds rose only slightly from 1.3% in June 2021 to 1.4% in June 2022. The increase in fund costs was less than the increase in yields on interest-generating assets, resulting in an improved Net Interest Margin (NIM) of 7.1% in June 2021, up from 6.4% in June 2021.
Total assets increased from NGN9.45 trillion at the end of December 2021 to NGN10.12 trillion at the end of June 2022. Despite the operating environment’s headwinds, the Group increased its risk assets as gross loans increased by 5% year on year, from NGN3.5 trillion to NGN3.7 trillion. This was accomplished with a low NPL ratio of 4.4% (FYE 2021: 4.2%) and a risk cost of 1.4% (June 2021: 1.3%). Liquidity and capital adequacy ratios remained stable and well above regulatory thresholds at 60.5% and 21.0%, respectively.
The Group is committed to advancing its digital banking strategy, which is based on a strong technological foundation, and intends to build on the gains made in previous years across all business segments. When combined with the Group’s industry leadership, we anticipate improved performance and higher returns for stakeholders.
Zenith Bank’s track record of excellence has earned the brand numerous accolades, including being named Number One Bank in Nigeria by Tier-1 Capital for the 13th consecutive year in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine; and Best Bank in Nigeria for three consecutive years from 2020 to 2022 in the Global Finance Awards. World’s Best Banks Awards; Best Commercial Bank, Nigeria 2021 and 2022 in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; Best in Corporate Governance ‘Financial Services’ Africa, for three consecutive years from 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Bank In addition, the bank was named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, the Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, and the Retail Bank of the Year in the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.
Similarly, Zenith Bank was named Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, and won four awards at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, including “Best Company in Reporting and Transparency,” “Best Company in Infrastructure Development,” “Best Company in Gender Equality and Women Empowerment,” and the coveted “Most Responsible Organization in Africa.”