Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2023, recording an astounding triple-digit growth of 139% in gross earnings from N404.8 billion reported in H1 2022 to N967.3 billion in H1 2023. This is a clear demonstration of its resilience and strong market share despite a very challenging macroeconomic environment and persistent headwinds.
According to the bank’s audited half-year financial results presented to the Nigerian Exchange (NGX) on Monday, 11th September 2023, the triple-digit growth in the top line also spurred the bottom line as the Group recorded a 169% Year on Year (YoY) increase in profit before tax, growing from N130 billion in H1 2022 to N350.4 billion in H1 2023. Profit after tax also grew by triple digits, growing by 162% from N111.4 billion to N291.7 billion in the same period.
The growth in gross earnings arose from both interest income and non-interest income. Interest income grew by 72% from N241.7 billion in H1 2022 to N415.4 billion in H1 2023, while non-interest income grew by 246% from N149 billion to N515.7 billion.
The growth in interest income is attributed to the impact of both the growth and repricing of risk assets. The liberalization of the foreign exchange market during the period spurred the growth in non-interest income as revaluations gains improved significantly.
In terms of efficiency, cost-to-income ratio improved from 58% to 38.5% in the current period on the back of an enhanced income line.
The liberalization of the foreign exchange market coupled with the heightened risk environment resulted in cost of risk growing from 1.4% to 8.8%. Cost of funding also grew YoY from 1.4% in H1 2022 to 2.6% in H1 2023 because of the spike in interest rates between both periods as interest expense grew from N57 billion in H1 2022 to N153.6 billion in H1 2023.
Total assets grew by 31% from N12.3 trillion to N16.0 trillion in December 2022, mainly driven by growth in customers’ deposits and the devaluation of the local currency. Customers’ deposits grew by 30% from N9.0 trillion in December 2022 to N11.6 trillion in June 2023.