In their latest audited report for the fiscal year concluding in 2023, Zenith Bank Plc reveals an extraordinary triple-digit growth of 125%, surging from an initial gross earning of NGN 5.6 billion in 2022 to an impressive NGN 2.132 trillion.
Presented to the Nigerian Exchange (NGX), the financial report showcases a remarkable Year-on-Year (YoY) surge of 180% in Profit Before Tax (PBT), soaring from NGN 284.7 billion in 2022 to NGN 796 billion in 2023.
Moreover, Profit After Tax (PAT) mirrors this exceptional growth trajectory, registering a triple-digit surge of 202% from NGN 223.9 billion to NGN 676.9 billion by the end of December 31, 2023.
This remarkable escalation in gross earnings is primarily attributed to the expansion in both interest and non-interest income streams. Interest income witnesses a staggering 112% increase from NGN 540 billion in 2022 to NGN 1.1 trillion in 2023. Concurrently, non-interest income experiences a robust growth of 141%, ascending from NGN 381 billion to NGN 918.9 billion within the same period.
The surge in interest income is credited to the expansion in the size of risk assets and their effective repricing, complemented by the rise in the yield of other interest-bearing instruments throughout the year. Additionally, the growth in non-interest income is propelled by substantial trading gains and an uptick in gains from the revaluation of foreign currencies.
While the cost of funds escalates from 1.9% in 2022 to 3.0% in 2023 due to the prevailing high interest rate environment, interest expense swells by 135% from NGN 173.5 billion in 2022 to NGN 408.5 billion in 2023.
Despite a 32% surge in operating expenses during 2023, the Group’s cost-to-income ratio witnesses a significant improvement from 54.4% in 2022 to 36.1% in 2023, buoyed by enhanced top-line performance. Return on Average Equity (ROAE) leaps by 118% from 16.8% in 2022 to 36.6% in 2023, driven by augmented gross earnings, as the Group strives to deliver superior shareholder returns. Simultaneously, Return on Average Assets (ROAA) experiences a robust growth of 95%, ascending from 2.1% to 4.1% during the same period.
Zenith Bank solidifies its market leadership in pivotal corporate and retail deposit segments, witnessing a substantial 69% surge in customer deposits from NGN 9.0 trillion to NGN 15.2 trillion in 2023.
The bank’s relentless focus on retail banking continues to yield dividends, with retail deposits now constituting 46% of total deposits (as compared to 44% in 2022) and growing by 77% from NGN 3.97 trillion in 2022 to NGN 7.04 trillion in 2023, further reinforcing increased customer trust in the Zenith brand.
Total assets witness a commendable 66% increase from NGN 12.3 trillion in 2022 to NGN 20.4 trillion in 2023, primarily propelled by the expansion in total deposits and the revaluation of foreign currency deposits.
