Zenith Bank Plc has released its audited results for the year ending December 31, 2022. Gross earnings increased by an amazing 24% from the NGN765.6 billion reported the previous year to NGN945.5 billion in 2022, representing an outstanding double-digit gain.
This is true notwithstanding the macroeconomic headwinds and persistently difficult climate.
The double-digit growth in gross earnings was driven by a 26% year-over-year (YoY) growth in interest income from NGN427.6 billion to N540.2 billion and a 23% year-over-year (YoY) growth in non-interest income from NGN309 billion to NGN381 billion, according to the audited financial results for the 2022 financial year presented to the Nigerian Exchange (NGX). Earnings before taxes increased 2% in the current year, from NGN280.4 billion to NGN284.7 billion.
All of the income lines had significant growth, which contributed to the rise in profit before taxes.
In contrast, interest expense increased by 63% YoY from N106.8 billion to N173.5 billion, a 107% increase in impairments from NGN59.9 billion to NGN124.2 billion. The impact of Ghana’s sovereign debt restructuring programme was the cause of the impairment growth, which also led to an increase in the cost of risk (from 1.9% in 2021 to 3.3% in the present year).
Due to increases in interest rates around the world, the surge in interest costs raised the cost of funding from 1.5% in 2021 to 1.9% in 2022.
From NGN6.47 trillion in the prior year to NGN8.98 trillion in the current year, customer deposits climbed by 39%.
Customer deposits increased across all product and deposit categories (corporate and retail), solidifying the bank’s position as the market leader and demonstrating the confidence of its clientele.
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The bank’s Net-Interest-Margin (NIM), which increased from 6.7% to 7.2% as a result of an effective repricing of interest-bearing assets, benefited from the ongoing high yield environment. Operational costs increased by 17% YoY, yet growth was still less than inflation. From NGN9.45 trillion in 2021 to NGN12.29 trillion in 2022, total assets climbed by 30%, primarily due to increases in customer deposits. The Group sensibly expanded its gross loans by 20%, from NGN3.5 trillion in 2021 to NGN4.1 trillion in 2022, in response to the economy’s stable and ongoing recovery. As a result, the Non-Performing Loan (NPL) ratio slightly increased, from 4.2% to 4.3% YoY. While the liquidity ratio increased from 71.2% to 75%, the capital adequacy ratio dropped from 21% to 19%. Both prudential ratios are significantly higher than regulatory.
The Group plans to broaden its horizons in 2023 while simultaneously restructuring into a holding company structure, increasing in all of its chosen domestic and foreign markets, and adding new verticals to its companies.
The bank has announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share, as a sign of its dedication to shareholders.
In appreciation of its history of superior results, Tier-1 Capital named Zenith Bank the top bank in Nigeria for the 13th year in a row in its 2022 Top 1000 Global Banks Ranking, which was released by The Banker Magazine; Nigerian bank named Bank of the Year at The Banker’s Bank of the Year Awards in 2020 and 2022; In the Global Finance World’s Best Banks Awards from 2020 to 2022, Nigeria was named Best Bank; in the World Finance Banking Awards, Nigeria was named Best Commercial Bank in 2021 and 2022; and in the World Finance Corporate Governance Awards, Nigeria was named Best Corporate Governance Bank in 2022.
Best in Corporate Governance’ Financial Services’ Africa, awarded three years in a row between 2020 and 2022 by the Ethical Boardroom; Best Commercial Bank, awarded to Nigeria; and Best Innovation in Retail Banking, awarded to Nigeria; both were recognised at the International Banker 2022 Banking Awards. Moreover, the bank won two awards: Retail Bank of the Year at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards for three straight years from 2020 to 2022, and Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021.
Similar accolades for Zenith Bank include Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Most Innovative Bank of the Year by Tribune Newspaper in 2019, Independent Newspaper in 2020, Champion Newspaper in 2021, New Telegraph Newspaper in 2022, and SERAS Awards in 2021 for Most Responsible Organization in Africa.
