Zenith Bank Continues to Grow at a Double-Digit Rate in the First Half of 2022

Ibekimi Oriamaja Reports

Zenith Bank Plc has released its audited results for the six months ended 30 June 2022, demonstrating its leadership in the industry and consistency in delivering superior financial returns. The bank recorded an astonishing double-digit growth of 17% in gross earnings, going from N346 billion reported in the first half of 2021 to N405 billion in the first half of 2022.

This was in spite of an extremely hard macroeconomic situation.

The growth was supported by a 19% year-over-year (YoY) increase in interest income from N204 billion to N242 billion and an 18% YoY increase in non-interest income from N127 billion to N149 billion, according to the bank’s audited half-year financial results presented to the Nigerian Exchange (NGX) yesterday.

The small rise in the loan book and increased interest margins were the main drivers of the expansion in interest revenue. The Group’s success in implementing its income diversification strategy is attested to by the rise in non-interest income.

Additionally, the profit before tax (PBT) of Zenith Bank increased by 11% YoY, from N117 billion to N130 billion. Over the same six-month period, earnings per share (EPS) increased from N3.38 to N3.55.

The Group’s total customer deposits increased by 11% year-to-date (YtD), closing the period at N7.15 trillion. The Group’s retail strategy continues to provide excellent results as retail deposits increased by 17% year over year, from N1.82 trillion to N2.13 trillion.

Fees on electronic devices increased by 45% YoY, from N17 billion to N25 billion, with the help of retail operations.

Zenith Bank’s cost of funding climbed just little from 1.3% in June 2021 to 1.4% in June 2022, despite the high yield environment.

A better Net Interest Margin (NIM) of 7.1%, up from a 6.4% in June 2021, resulted from a decrease in the cost of funds and an increase in the yields on interest-generating assets.

The total assets of Zenith Bank increased from N9.45 trillion at the end of December 2021 to N10.12 trillion at the end of June 2022. Despite the operating environment’s challenges, the Group increased its risk assets as gross loans increased by 5% year over year, from N3.5 trillion to N3.7 trillion. This was accomplished with a moderate non-performing loan (NPL) ratio of 4.4% (June 2021: 1.3%; FYE 2021: 4.2%) and cost of risk of 1.4%. At 60.5% and 21%, respectively, of its prudential ratios, such as liquidity and capital adequacy, remained consistent and far above regulatory standards.

The Group stated that it is continuing to concentrate on developing its technology-based digital banking strategy and plans to build on the successes made in recent years across all business segments.

The bank said that when combined with the Group’s leadership in the industry, “we expect this to produce greater performance and offer enhanced returns to stakeholders.”

Numerous accolades have been given to Zenith Bank as a result of its track record of outstanding performance, including recognition as the top bank in Nigeria by Tier-1 Capital for the 13th year in a row in the Top 1000 World Banks Ranking published by The Banker Magazine in 2022 and Best Bank in Nigeria for three consecutive years from 2020 to 2022 in the Global Finance Ranking. The World’s Best Banks Awards; Best Commercial Bank, Nigeria in the 2021 and 2022 World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the 2022 World Finance Corporate Governance Awards; Best in Corporate Governance ‘Financial Services’ Africa for three years in a row from 2020 to 2022 by the Ethical Boardroom; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the 2022 International Banker Banking Awards; and Best in Corporate Governance ‘Financial Services’ Africa. Additionally, the Bank won awards for Retail Bank of the Year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, and Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021.

Similar to how Zenith Bank 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,” Zenith Bank was recognized as Bank of the Decade (People’s Choice).