Zenith Bank announces 30.03% increase in assets to N12.29trn

Zenith Bank Plc grew its assets by 30.03per cent from N9.45trillion in 2021 financial year to N12.29trillion in the corresponding period of 2022, mainly driven by growth in customer deposits.

The bank disclosed this in a statement on Tuesday on its audited results for the year ending December 31, 2022.

It said that its customer deposits increased by 39 per cent, growing from N6.47trillion in the previous year to N8.98trillion in the current year.

The growth in customer deposits came from all products and deposit segments (corporate and retail), consolidating the bank’s market leadership and indicating customers’ trust.

With the steady and continued recovery in economic activities, the Group grew its gross loans by 20 per cent, from N3.5trillion in 2021 to N4.1trillion in 2022, which increased the non-performing loan ratio modestly from 4.2 per cent to 4.3 per cent YoY.

Despite the persistent challenging macroeconomic environment and headwinds, the statement said the bank achieved double-digit growth.

“According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange, the double-digit growth in gross earnings was driven by a 26 per cent year-on-year growth in interest income from N427.6 billion to N540.2 billion and a 23 per cent year-on-year growth in non-interest income from N309 billion to N381 billion,” the bank said.

As part of its commitment to shareholders, the bank also announced a proposed final dividend payout of N2.90 per share, bringing total dividend to N3.20 per share.

“Profit before tax also grew by two per cent from N280.4 billion to N284.7 billion in the current year. The increase in profit before tax was due to the significant growth in all the income lines,” it added.

According to the bank, impairments grew by 107 per cent from N59.9 billion to N124.2 billion, while interest expense grew by 63 per cent 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 cent in 2021 to 3.3 per cent in the current year), was due to the impact of Ghana’s sovereign debt restructuring programme, the bank explained.

It added that the growth in interest expense increased the cost of funds from 1.5 per cent in 2021 to 1.9 per cent in 2022, due to hikes in interest rates globally.

The continued elevated yield environment positively impacted the bank’s net-interest-margin, which grew from 6.7 per cent to 7.2 per cent, due to an effective repricing of interest-bearing assets.

Operating expenses grew by 17 per cent YoY, but growth remained below the inflation rate.

The capital adequacy ratio decreased from 21 per cent to 19 per cent, while the liquidity ratio improved from 71.2 per cent to 75 per cent. Both prudential ratios were 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,” the statement said.