Zenith Bank reported a triple-digit gain of 114%, going from N620.6 billion in Q3 2022 to N1.33 trillion in Q3 2023.
In the third quarter ending September 30, 2023, unaudited results for Zenith Bank Plc were released. Zenith Bank reported a triple-digit gain of 114%, going from N620.6 billion in Q3 2022 to N1.33 trillion in Q3 2023.
This performance shows the group’s tenacity and substantial market share in a tough macroeconomic climate.
The bank’s unaudited third-quarter financial results, which were submitted to the Nigerian Exchange (NGX), showed that the triple-digit growth in the top line had a positive impact on the bottom line. The group’s profit before taxes increased by 149% year over year (YoY), from N202.5 billion in Q3 2022 to N505 billion in Q3 2023.
During the same period, profit after tax increased by 149%, from N174.3 billion to N434.2 billion.
Both interest and non-interest income contributed to the topline’s rise. Non-interest revenue increased by 186% from N212 billion to N607.2 billion during the current period, while interest income increased by 72% to N670.9 billion from N390.8 billion in Q3 2022.
The gain in both interest and non-interest revenue has a double impact that accounts for the profit growth.
Growth in risk assets and their effective pricing led to increased interest revenue. The gain in revaluation resulting from the unification of exchange rates throughout the year is the primary driver of the growth in non-interest income.
In the current time, the cost-to-income ratio decreased from 55.8% in Q3 2022 to 37.8%. Deliberate incremental provisions required by the conservative approach to the elevated risk environment and the establishment of a counter-cyclical buffer required to handle any imminent exchange rate volatility resulted in higher impairment levels.
Due to careful management of risk assets, the cost of risk improved from 1.3% in Q3 2022 to 5.5% in Q3 2023; nevertheless, this is still less than Q2 2023, when the cost of risk printed at 8.8%.
From N12.3 trillion to N18.2 trillion at the end of September 30, 2023, total assets increased by 48%, mostly due to an increase in customer deposits.
Growth in risk assets and their effective pricing led to increased interest revenue. The revaluation advantage from the year’s exchange rate unification is a major factor driving the growth in non-interest income. At the current time, the cost-to-income ratio decreased from 55.8% in Q3 2022 to 37.8%. Deliberate incremental provisions required by the conservative approach to the elevated risk environment and the establishment of a counter-cyclical buffer required to handle any imminent exchange rate volatility resulted in higher impairment levels.
Due to careful risk asset management, this resulted in a decline in the cost of risk from 1.3% in Q3 2022 to 5.5% in Q3 2023; nonetheless, this is still better than Q2 2023 when the cost of risk printed at 8.8%.
From N12.3 trillion to N18.2 trillion at the end of September 30, 2023, total assets increased by 48%, mostly due to an increase in customer deposits.
Between December 2022 and September 2023, customer deposits increased by 49%, from N8.98 trillion to N13.38 trillion.
From N2.7 trillion in December 2022 to N4.6 trillion in September 2023, the savings portfolio (all currencies) increased due to the growth in client deposits in both the corporate and retail divisions.
Between December 2022 and September 2023, gross loans climbed by 48% from N4.1 trillion to N6.1 trillion, mostly as a result of the revaluation of loans denominated in foreign currencies and the expansion of local currency loans to economically vital and key industries.
For the period ending September 30, 2023, the non-performing loan ratio decreased to 3.8%, which is far within prudential standards.
Because of the low yield on government securities, net interest margin (NIM) printed at 5.6% in September 2022, down from 6.2% in September 2022.
While the liquidity ratio dropped from 75% to 68%, the capital adequacy ratio slightly increased to 20.1% from 19.8%. All of our prudential ratios, meanwhile, continue to be higher than legal limits.
The Group is certain that it will close 2023 on a high note, concentrating on long-term, rapid victories that will increase investor value and spur growth in all business divisions.
Because of its consistently high performance, Zenith Bank has won multiple accolades.
Among its acknowledged honors are:
- acknowledgment by Tier-1 Capital of being the top bank in Nigeria for the fourteenth year running in The Banker Magazine’s 2023 Top 1000 World Banks Ranking;
- Nigeria’s Best Commercial Bank won the World Finance Banking Awards three times in a row, from 2021 to 2023.
- Nigeria’s Best Corporate Governance Bank, winner of the 2022 and 2023 World Finance Corporate Governance Awards;
- Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; Global Finance World’s Best Banks Awards: Best Bank in Nigeria for three years in a row, 2020–2022;
- The Ethical Boardroom named Nigeria’s bank Best in Corporate Governance for Financial Services in Africa four times in a row, from 2020 to 2023;
- the International Banker 2023 Banking Awards named Nigeria’s bank Most Sustainable;
- and the International Banker 2022 Banking Awards named Nigeria’s commercial bank Best and Best Innovation in Retail Banking.
Additionally, the bank won three straight years from 2020 to 2022 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards, including Most Valuable Banking Brand in Nigeria, Bank of the Year 2023, and Retail Bank of the Year. These awards were from the Banker Magazine Top 500 Banking Brands 2020 and 2021.
Comparably, Zenith Bank won the following accolades: Most Responsible Organization in Africa (2021) by SERAS Awards; Bank of the Year (2021) by Champion Newspaper; Bank of the Decade (People’s Choice) at the ThisDay Awards 2020; and Bank of the Year (2022) by New Telegraph Newspaper.
