Zenith Bank Plc has announced its unaudited results for the first quarter ending 31st March 2023, with a double-digit growth of 41% in gross earnings, increasing from N191.5 billion in Q1 2022 to N270 billion in Q1 2023.
The unaudited statement of account submitted to the Nigerian Exchange (NGX) on Friday, indicated that the significant double-digit growth in the topline also boosted the bottom line, with the Group experiencing an impressive 27% year-on-year (YoY) increase in Profit Before Tax (PBT), rising from N68bn in Q1 2022 to N86.6bn in Q1 2023. Profit After Tax (PAT) also grew by 13% from N58.2bn to N66bn during the same period.
The growth in the topline was propelled by substantial increases in both interest income and non-interest income.
The bank’s interest income surged by 52% from N126.4bn in Q1 2022 to N191.6bn in Q1 2023, while non-interest income expanded by 27% from N57.2bn billion to N72.8bn.
The growth in interest income can be attributed to the impact of risk asset repricing, while the increase in non-interest income primarily resulted from loan recoveries and foreign currency revaluation gains.
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Regarding efficiency, the cost-to-income ratio improved from 55% to 53.4% in the current period, supported by a bolstered income line.
The cost of risk also moderated from 0.8% to 0.7% during the same period due to an enlarged loan book. However, the cost of funding doubled YoY from 1.3% in Q1 2022 to 2.7% in Q1 2023, owing to a considerable spike in interest rates between both periods as interest expense grew from N25.8bn in Q1 2022 to N70.8bn in Q1 2023. This impacted the net interest margin (NIM), which reduced from 7.3% to 6.9% over the same period.
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