Zenith Bank Plc yesterday released its audited results for the year ended December 31, 2023, growing its earnings from NGN945.6 billion reported in 2022 to NGN2.132 trillion in 2023, representing 125% in gross earnings.
According to the audited financial results for the 2023 financial year presented to the Nigerian Exchange (NGX), the growth in gross earnings resulted in a Year-on-Year (YoY) increase of 180% in Profit Before Tax (PBT) from NGN284.7 billion in 2022 to NGN796 billion in 2023.
Profit After Tax (PAT) also recorded triple-digit growth of 202% from NGN223.9 billion to NGN676.9 billion in the period ended December 31, 2023.
The bank attributed the increase in gross earnings “to growth in interest and non-interest income.”
This is just as the group said it will complete the transition to a holding company structure in 2024, stating that would “position it advantageously for exploring emerging opportunities in the Fintech space while bolstering its digital and retail banking initiatives.”
According to a statement, interest income increased by 112% from NGN540 billion in 2022 to NGN1.1 trillion in 2023. Non-interest income grew by 141% from NGN381 billion to NGN918.9 billion in the same period.
The cost of funds grew from 1.9% in 2022 to 3.0% in 2023 while interest expense increased by 135% from NGN173.5 billion in 2022 to NGN408.5 billion in 2023.
Despite the 32% growth in operating expenses in 2023, the group’s cost-to-income ratio improved significantly from 54.4% in 2022 to 36.1% in 2023 due to improved top-line performance.
Return on Average Equity (ROAE) increased by 118% from 16.8% in 2022 to 36.6% in 2023, underpinned by improved gross earnings, as the group sought to deliver better shareholder returns. Return on Average Assets (ROAA) also grew by 95% from 2.1% to 4.1% in the same period.
Similarly, customer deposits increased by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023 while retail deposits now constitute 46% of total deposits (compared to 44% in 2022) and grew by 77% from NGN3.97 trillion in 2022 to NGN7.04 trillion in 2023.
Total assets increased by 66% from NGN12.3 trillion in 2022 to NGN20.4 trillion in 2023.
Gross loans grew by 71% from NGN4.1 trillion in 2022 to NGN7.1 trillion in 2023 due to the revaluation of foreign currency loans and the growth in local currency risk assets.
