Saturday , 17 May 2025
Home Business Zenith Bank Records Remarkable 41% Topline Growth in Q1 2023
BusinessTrending News

Zenith Bank Records Remarkable 41% Topline Growth in Q1 2023

ZENITH BANK

Zenith Bank Plc has announced its unaudited results for the first quarter ending 31st March 2023, with an exceptional double-digit growth of 41% in Gross Earnings, increasing from ₦191.5 billion in Q1 2022 to ₦270 billion in Q1 2023.

 

The unaudited statement of account submitted to the Nigerian Exchange (NGX) on Friday, 28th April 2023, indicated that the significant double-digit growth in the topline also boosted the bottom line, with the Group experiencing an impressive 27% year-on-year (YoY) increase in Profit Before Tax (PBT), rising from ₦68 billion in Q1 2022 to ₦86.6 billion in Q1 2023. Profit After Tax (PAT) also grew by 13% from ₦58.2 billion to ₦66 billion during the same period.

The growth in the topline was propelled by substantial increases in both interest income and non-interest income. Interest income surged by 52% from ₦126.4 billion in Q1 2022 to ₦191.6 billion in Q1 2023, while non-interest income expanded by 27% from ₦57.2 billion to ₦72.8 billion. The growth in interest income can be attributed to the impact of risk asset repricing, while the increase in non-interest income primarily resulted from loan recoveries and foreign currency revaluation gains.

Regarding efficiency, the cost-to-income ratio improved from 55% to 53.4% in the current period, supported by a bolstered income line. The cost of risk also moderated from 0.8% to 0.7% during the same period due to an enlarged loan book. However, the cost of funding doubled YoY from 1.3% in Q1 2022 to 2.7% in Q1 2023, owing to a considerable spike in interest rates between both periods as interest expense grew from ₦25.8 billion in Q1 2022 to
₦70.8 billion in Q1 2023. This impacted the net interest margin (NIM), which reduced from 7.3% to 6.9% over the same period.

Total assets expanded by 9% from ₦12.29 trillion in December 2022 to ₦13.36 trillion in March 2023, primarily driven by growth in customer deposits and other funding sources, such as borrowings. Customer deposits increased by 2% from ₦8.98 trillion in December 2022 to ₦9.14 trillion in March 2023.

Loans and advances also experienced marginal growth of 1% from ₦4.12 trillion in December 2022 to ₦4.15 trillion in March 2023 as customers continued to adjust to the full impact of higher rates on risk assets. Both the capital adequacy and liquidity ratios remained robust at 19.5% and 72%, respectively, with both prudential ratios comfortably exceeding regulatory thresholds.

See also  Bank The Eazy Way With The Zenith Bank QR Service: Another Unique Way Of Online Banking

 

In 2023, the Group will maintain its focus on sustainable growth across all business segments as it restructures into a holding company, introduces new verticals to its businesses, and expands into new frontiers.

 

Zenith Bank’s consistent record of outstanding performance has garnered numerous accolades for the brand, including being acknowledged as the Number One Bank in Nigeria by Tier-1 Capital for the 13th consecutive year in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine. The bank has also received the Bank of the Year (Nigeria) title in The Banker’s Bank of the Year Awards 2020 and 2022, as well as the Best Bank in Nigeria award for three consecutive years, from 2020 to 2022, in the Global Finance World's Best Banks
Awards.

 

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Glo Foundation, LAWMA
Health & WellbeingTrending News

Glo Foundation treats LAWMA sweepers to day of fun, excitement, empowerment 

Glo Foundation, the social responsibility arm of Globacom, on Saturday partnered the...

Unity Bank
BusinessTrending News

Global Money Week: Unity Bank Deepens Commitment to Financial Literacy with Nationwide Youth Outreach

In demonstration of its commitment to financial empowerment targeting Youths, Unity Bank...

EducationTrending News

Unity Bank Launches GenFi, Targets Children, Teens with Gamified Banking Platform

In a bold move to redefine promotion of financial literacy, Nigeria’s retail lender, Unity...

FIRSTBANK
SportsTrending News

FirstBank And Estars Forge Innovative Partnerships to Elevate Esports Education

FirstBank, the West African premier bank and financial inclusion service provider, is...