Zenith Bank Plc has recorded an astounding triple-digit growth of 139 per cent in its gross earnings to N967.3 billion for the audited half year 2023, HI’23, results from N404.8 billion recorded in the corresponding period of 2022, H1’22.
According to the financial group’s H1 2023 report filed with the Nigerian Exchange Limited on Monday, profit after tax improved by 161.84 per cent to N291.7bn at the end of June 2023.
The board of directors of the financial institution also proposed 50 Kobo as an interim dividend, which was 66.67 per cent higher than the dividend of 30 Kobo for the corresponding period in 2022.
The growth in gross earnings arose from both interest income and non-interest income. Interest income grew by 72per cent from N241.7 billion in H1 2022 to N415.4 billion in H1 2023, while non-interest income grew by 246per cent to N515.7 billion from N149 billion .The growth in interest income is attributed to the impact of both the growth and repricing of risk assets. The liberalization of the foreign exchange market during the period spurred the growth in non-interest income as revaluations gains improved significantly.
In terms of efficiency, cost-to-income ratio improved to 38.5per cent from 58per cent on the back of an enhanced income line. The liberalization of the foreign exchange market coupled with the heightened risk environment resulted in cost of risk growing to 8.8per cent from 1.4per cent.
During the period under review, the cost of funding also grew year-on-year from 1.4 per cent in H1 2022 to 2.6 per cent in H1 2023 because of the spike in interest rates between both periods as interest expense grew from N57bn in H1 2022 to N153.6bn in H1 2023.
The bank’s total assets rose by 31 per cent from N12.3tn in December 2022 to N16tn in H1 2023, mainly driven by growth in customers’ deposits and the devaluation of the local currency. Customers’ deposits grew by 30 per cent from N9tn in December 2022 to N11.6tn.
Loans and advances also grew by 32 per cent from N4.12tn in December 2022 to N5.38tn during the period under review, partly due to the revaluation of the foreign currency-denominated loans as well as growth in local currency loans.