Saturday , 13 July 2024
Home Business Zenith Bank Surmounts Macroeconomic  Headwinds With Double-digit Growth in Gross Earnings in Q3 2022 
BusinessTrending News

Zenith Bank Surmounts Macroeconomic  Headwinds With Double-digit Growth in Gross Earnings in Q3 2022 

ZENITH BANK

Zenith Bank Plc has announced its unaudited results for the third quarter ended 30 September 2022, recording a remarkable double-digit growth of 20% in gross earnings from NGN518.7 billion reported in Q3 2021 to NGN620.6 billion in Q3 2022. This performance demonstrates the Group’s resilience against a challenging macroeconomic environment. 

 

According to the unaudited account presented to the Nigerian Exchange (NGX), the growth in the topline was driven by interest and non-interest income growth. Interest income grew by 27% from NGN308.8 billion to NGN390.8 billion, driven majorly by growth in risk assets and an improvement in pricing. This also strengthened Earnings Per Share (EPS) by 9% to NGN5.55.

 

This double-digit growth in the topline also aided the bottom line, as the Group also recorded a 13% year-on-year (YoY) increase in profit before tax, growing from NGN179.8 billion in Q3 2021 to NGN202.5 billion in Q3 2022. Profit after tax equally grew by 9% from NGN160.6 billion to NGN174.3 billion in the same period.

 

Growth in non-interest income was enabled by the Group’s retail strategy, with continued substantial customer acquisition driving transactions, deposit growth and growth in electronic banking income.

 

See also  Take Education Back To its Standard: Ireti Primary School Ikoyi Alumni Charges Government

Due to inflationary pressure and the rising cost of doing business, operating costs grew by 17%. However, this was below the growth in gross earnings (20%), thereby facilitating the double-digit growth in the bottom line.

 

The continuing elevated yield environment affected the cost of funding which increased from 1.4% to 1.7% in the current period. This affected the net interest margin (NIM), which dropped due to the immediate implementation of higher yields on interest-bearing liabilities. However, the NIM is expected to see a correction in subsequent quarters as the assets side is repriced correspondingly.

 

Total assets grew by 20% from NGN9.45 trillion to NGN11.34 trillion in 2022, mainly driven by growth in customers’ deposits. Customer deposits grew by 24% from NGN6.47 trillion in December 2021 to NGN8.04 trillion in September 2022 due to the market’s confidence in the brand.

 

Loans and advances also grew by 16% from NGN3.5 trillion in December 2021 to NGN4.06 trillion in September 2022, boosting the Group’s interest income and displaying the Group’s appetite for high-yielding risk assets creation. As a result of this growth, the capital adequacy ratio reduced from 21% to 19.1%, while the liquidity ratio reduced from 71.6% to 68.9%. Both prudential ratios remain very strong and are still well above regulatory thresholds.

See also  LAWMA, LASPARK Build Christmas Trees From Recyclable Items

 

In the year’s final quarter, management is determined to sustain the strong performance trajectory while adapting to changes in the regulatory environment and focusing on creative initiatives to mitigate inflationary trends, foreign exchange pressures and the growing competitive environment.

 

Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, including being recognised as 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; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best Commercial Bank, Nigeria 2021 and 2022 in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; Best in Corporate Governance’ Financial Services’ Africa, for three consecutive years from 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards. Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.

See also  I Remain Labour Party Acting Chairman – Lamidi Apapa Says, Speaks On Those Sponsoring Him

 

Similarly, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment”, and the coveted “Most Responsible Organisation in Africa.

 

Leave a comment

Leave a Reply

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

Related Articles

Nigerian Idol S9
EntertainmentLife & StyleTrending News

Nigerian Idol S9: Anticipation Builds as Finale Approaches

The journey to crown the next idol on Nigeria’s music reality show,...

Kemi Oriowo
NewsTrending News

Court Orders Kemi Oriowo’s arrest over Cyber Stalking and Perjury

Most cyberbullies think they are invincible,because they hide behind an electronic device...

EFCC
NewsTrending News

MPPR Decry EFCC’s Prejudicial Conduct, Warns of Miscarriage of Justice in Yahaya Bello’s Case

Leadership of the Movement for the Protection of People’s Rights MPPR on...

Multichoice
SportsTrending News

MultiChoice Unveils Broadcast Plan For 2024/25 European Football Season

Africa’s leading entertainment company, MultiChoice, has announced that all Premier League, La...