Connect with us

Hi, what are you looking for?

Press Release

Zenith Bank Reports Record Profit of N679.9 Billion In 2023

ZENITH BANK EMERGES AS THE MOST SUSTAINABLE BANK IN NIGERIA IN THE INTERNATIONAL BANKER AWARDS 2024 FOR THE SECOND CONSECUTIVE YEAR
Zenith Bank

Zenith Bank Plc, one of Nigeria’s largest banks, published its audited accounts for the fiscal year 2023, showcasing gross earnings of N2.13 trillion.

This represents a growth of 125.4% year on year and is the highest gross earnings ever reported in the company’s history.

The bank also reported a net interest income of approximately N736.18 billion, more than double what was reported in the previous year.

Furthermore, the group accrued an FX revaluation gain of N228.98 billion, marking a substantial appreciation from the N25.2 billion gain accrued in 2022.

 

Key Highlights (FY 2023 vs FY 2022)

  • Gross Earnings: N2.13 trillion, +125.4% YoY
  • Net Interest Income: N736.18 billion, +100.8% YoY
  • Net Income on Fees and Commission: N109.31 billion, -17.7% YoY
  • Trading Gains: N566.97 billion, +166.6% YoY
  • Profit Before Tax: N795.96 billion, +179.6% YoY
  • Profit After Tax: N676.91 billion, +202.3% YoY
  • Earnings per share: N21.55, +201.8% YoY
  • Loans and Advances: N6.57 trillion, +63.4% YoY
  • Total Assets: N20.37 trillion, +65.8% YoY
  • Total Shareholders’ Equity: N2.32 trillion, +68.5% YoY
  • Retained Earnings: N1,179,390 vs N625,005
  • Proposed Dividends: N3.50 per share (Total for the year N4 per share)

Commentary

Zenith Bank’s exceptional performance can largely be attributed to a significant surge in its interest income, where it amassed a staggering N1.1 trillion.

  • However, the bank allocated a substantial provision of about N409.6 billion, reducing its Net
  • Interest Income after provisioning to N326.5 billion.
  • This considerable provision may be linked to the bank’s challenges in utilizing its vast retained earnings for dividend payments, especially after the central bank’s recent decision to exclude retained earnings from its calculation of a bank’s share capital.
  • Moreover, Zenith Bank significantly benefited from the foreign exchange rate, garnering an estimated N228.9 billion from forex revaluation gains.
  • The bank also reported N566.9 billion from trading gains. Interest income from treasury bills in 2023 soared to N179.0 billion, representing a 310.4% growth from the N43.6 billion recorded in 2022.

 

  • Additionally, interest income from government and other bonds reached N187.4 billion in 2023.
  • A major contributor to fees and commission income for Zenith Bank during the fiscal year was electronic product fees, which amounted to N51.8 billion, marking a 13.3% increase from the N45.7 billion posted in 2022.
  • In 2023, the group’s capital adequacy ratio climbed to 22%, up from 20% in 2022.

You May Also Like

Press Release

In his words, he said “Democracy is not about politics; Democracy literally means the power of the people.The strength of a nation lies in...

Sports

England’s recent defeat in a crucial pre-Euro 2024 match has sent shockwaves through the footballing world, prompting captain Harry Kane to label it as...

BREAKING NEWS

In a move that sent shockwaves through Nigeria’s political and law enforcement circles, former Lagos State Governor and influential political figure Bola Tinubu has...

News

TOUCHAHEART – The Nigeria Labour Congress (NLC) has vowed to reject any minimum wage proposal below ₦250,000, describing such offers as “starvation wages”. The...