Zenith Bank Plc has announced its audited results for the year ending Dec. 31, 2022, achieving a growth of 24 percent in gross earnings from N765.6 billion reported in 2021 to N945.5 billion in 2022.
This is despite the persistent challenging macroeconomic environment and headwinds.
According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange Ltd. (NGX), the double-digit growth in gross earnings was driven by a 26 percent year-on-year (YoY) growth in interest and non-interest income.
The interest income grew from N427.6 billion to N540.2 billion and a 23 percent year-on-year (YoY) growth in non-interest income from N309 billion to N381 billion.
Profit before tax also grew by two percent from N280.4 billion to N284.7 billion in the current year.
Zenith Bank’s increase in profit before tax was due to the significant growth in all the income lines.
Impairments grew by 107 percent from N59.9 billion to N124.2 billion, while interest expense grew 63 percent YoY from N106.8 billion to N173.5 billion, respectively.
The impairment growth, which also resulted in an increase in the cost of risk (from 1.9 per in 2021 to 3.3 percent in the current year), was due to the impact of Ghana’s sovereign debt restructuring programme.
The growth in interest expense increased the cost of funds from 1.5 percent in 2021 to 1.9 percent in 2022 due to hikes in interest rates globally.
Customer deposits increased by 39 percent, growing from N6.47 trillion in the previous year to N8.98 trillion in the current year.
The growth in customer deposits came from all products and deposit segments (corporate and retail), thus consolidating the bank’s market leadership and indicating customers’ trust.
The continued elevated yield environment positively impacted the bank’s Net-Interest- Margin (NIM), which grew from 6.7per cent to 7.2 percent due to an effective repricing of interest- bearing assets. Operating expenses grew by 17 percent YoY, but growth remains below the inflation rate.
Total assets increased by 30 percent growing from N9.45 trillion in 2021 to N12.29 trillion, mainly driven by growth in customer deposits.
With the steady and continued recovery in economic activities, the Group prudently grew its gross loans by 20 percent, from N3.5 trillion in 2021 to N4.1 trillion in 2022, which increased the Non-Performing Loan (NPL) ratio modestly from 4.2 percent to 4.3 percent, YoY.
The capital adequacy ratio decreased from 21per cent to 19 percent while the liquidity ratio improved from 71.2 percent to 75 percent. Both prudential ratios are well above regulatory thresholds.
In 2023, the Group intends to expand its frontiers as it also reorganises into a holding company structure, adding new verticals to its businesses and growing in all its chosen markets, both locally and internationally.
As a testament to its commitment to shareholders, Zenith Bank has announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.