UPDATED: Zenith Bank Plc reports profit of N679.9 billion in 2023


Zenith Bank Plc has unveiled its audited results for the fiscal year ending December 31, 2023, showcasing an extraordinary triple-digit surge in gross earnings by 125%, soaring from NGN945.6 billion in 2022 to NGN2.132 trillion in 2023.

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The company’s audited financial report, presented to the Nigerian Exchange (NGX), highlights a remarkable 180% Year-on-Year (YoY) surge in Profit Before Tax (PBT) from NGN284.7 billion in 2022 to NGN796 billion in 2023.

Furthermore, Profit After Tax (PAT) witnessed an impressive triple-digit growth of 202%, escalating from NGN223.9 billion to NGN676.9 billion for the year ended December 31, 2023.

The surge in gross earnings is primarily attributed to the expansion in both interest and non-interest income.

Interest income witnessed a notable 112% upswing from NGN540 billion in 2022 to NGN1.1 trillion in 2023.

Similarly, non-interest income experienced a substantial growth of 141%, climbing from NGN381 billion to NGN918.9 billion during the same period.

This boost in interest income is credited to the expansion in the size of risk assets, coupled with effective repricing, while the surge in non-interest income is fueled by significant trading gains and increased gains from the revaluation of foreign currencies.

Despite the high interest rate environment, the cost of funds surged from 1.9% in 2022 to 3.0% in 2023, leading to a 135% increase in interest expense from NGN173.5 billion to NGN408.5 billion.

Nonetheless, the Group’s cost-to-income ratio saw a significant improvement, dropping from 54.4% in 2022 to 36.1% in 2023, attributed to enhanced top-line performance.

Return on Average Equity (ROAE) surged by 118%, rising from 16.8% in 2022 to 36.6% in 2023, supported by improved gross earnings.

Additionally, Return on Average Assets (ROAA) witnessed a growth of 95%, ascending from 2.1% to 4.1% during the same period.Zenith Bank has further solidified its market leadership in key corporate and retail deposit segments, with customer deposits soaring by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023.

The bank’s retail initiative has yielded significant dividends, with retail deposits now constituting 46% of total deposits, marking a growth of 77% from NGN3.97 trillion in 2022 to NGN7.04 trillion in 2023.

Moreover, total assets surged by 66% from NGN12.3 trillion in 2022 to NGN20.4 trillion in 2023, largely driven by the growth in total deposits and the revaluation of foreign currency deposits.

Gross loans also witnessed a substantial increase of 71%, ascending from NGN4.1 trillion in 2022 to NGN7.1 trillion in 2023, attributed to the revaluation of foreign currency loans and the expansion in local currency risk assets.

Despite the challenging operating environment, Zenith Bank’s disciplined approach to risk asset creation and management has ensured that the Non-Performing Loans (NPL) ratio increased only marginally from 4.3% to 4.4%.

Additionally, the bank’s prudential ratios remain within regulatory thresholds, with the Capital Adequacy Ratio (CAR) and liquidity ratio at 21.7% and 71.0%, respectively, at the close of 2023.As a testament to its commitment to shareholders, Zenith Bank has proposed a final dividend payout of NGN3.50 per share, bringing the total dividend to NGN4.00 per share.

Looking ahead, the bank is set to complete its transition to a holding company structure in 2024, positioning itself advantageously to explore emerging opportunities in the Fintech space while bolstering its digital and retail banking initiatives.

Additionally, the bank is undertaking necessary actions to meet the new minimum NGN500 billion equity capital requirement stipulated by the Central Bank of Nigeria (CBN), further strengthening its presence in key markets and positioning for sustainable growth and value addition for stakeholders.

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Azonuchechi Chukwu
Azonuchechi Chukwuhttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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