From N765.6 million at the end of the 2021 financial year to N945.5 million in the corresponding 2022 financial year, Zenith Bank Plc’s gross earnings increased by 24%.
On Tuesday, the bank released a statement titled “Zenith Bank grows gross earnings by 24 per cent to N945.5bn in 2022” on its audited results for the year ending December 31, 2022.
The bank also announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share as part of its commitment to shareholders.
The bank reported double-digit growth in the statement, despite the persistently difficult macroeconomic environment and obstacles.
It stated, “The double-digit growth in gross earnings was driven by a 26% year-on-year growth in interest income from N427.6bn to N540.2bn and a 23% year-on-year growth in non-interest income from N309bn to N381bn according to the audited financial results for the 2022 financial year presented to the Nigerian Exchange.”
“Profit before taxes also increased by 2% in the current year, going from N280.4 billion to N284.7 billion. The significant growth in all income streams was the cause of the increase in profit before taxes.
The bank reports that impairments increased by 107% from N59.9 billion to N124.2 billion and interest expense increased by 63% YoY from N106.8 billion to N173.5 billion, respectively.
The bank explained that Ghana’s sovereign debt restructuring program was the cause of the impairment growth, which also led to an increase in the cost of risk (from 1.9% in 2021 to 3.3% in the current year).
The cost of funds increased by 1.9% in 2022 from 1.5% in 2021, as a result of global interest rate increases, according to the report.
Customer deposits increased by 39%, reaching N8.98 trillion this year from N6.47 trillion the previous year.
The bank’s market leadership was solidified as a result of the rise in customer deposits, which came from both corporate and retail deposit segments.
The proceeded with raised yield climate emphatically affected the bank’s net-premium edge, which developed from 6.7 percent to 7.2 percent, because of a successful repricing of premium bearing resources.
Operating expenses increased by 17% year-over-year, but growth was still below inflation.
The bank claims that customer deposit growth was primarily responsible for the 30% increase in total assets from N9.45 trillion in 2021 to N12.29 trillion in 2022.
The Group’s gross loans increased by 20% from N3.5tn in 2021 to N4.1tn in 2022 as economic activity continued to recover. This resulted in a modest increase in the non-performing loan ratio from 4.2% to 4.3% year-over-year, a decrease in the capital adequacy ratio from 21% to 19%, and an increase in the liquidity ratio from 71% to 75%. Both prudential ratios were above the limits set by the regulations.
“In 2023, the Gathering plans to extend its frontiers as it likewise redesigns into a holding organization structure, adding new verticals to its organizations and filling in the entirety of its picked markets, both locally and globally,” the assertion said.
